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Honduras Economy Profile 2019

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Economy - overview

Honduras, the second poorest country in Central America, suffers from extraordinarily unequal distribution of income, as well as high underemployment. While historically dependent on the export of bananas and coffee, Honduras has diversified its export base to include apparel and automobile wire harnessing.

Honduras’s economy depends heavily on US trade and remittances. The US-Central America-Dominican Republic Free Trade Agreement came into force in 2006 and has helped foster foreign direct investment, but physical and political insecurity, as well as crime and perceptions of corruption, may deter potential investors; about 15% of foreign direct investment is from US firms.

The economy registered modest economic growth of 3.1%-4.0% from 2010 to 2017, insufficient to improve living standards for the nearly 65% of the population in poverty. In 2017, Honduras faced rising public debt, but its economy has performed better than expected due to low oil prices and improved investor confidence. Honduras signed a three-year standby arrangement with the IMF in December 2014, aimed at easing Honduras’s poor fiscal position.

GDP (purchasing power parity)
$46.3 billion (2017 est.)
$44.18 billion (2016 est.)
$42.58 billion (2015 est.)

note: data are in 2017 dollars

GDP (official exchange rate)
$22.98 billion (2017 est.)
GDP - real growth rate
4.8% (2017 est.)
3.8% (2016 est.)
3.8% (2015 est.)
GDP - per capita (PPP)
$5,600 (2017 est.)
$5,400 (2016 est.)
$5,300 (2015 est.)

note: data are in 2017 dollars

Gross national saving
22.1% of GDP (2017 est.)
20.6% of GDP (2016 est.)
20.5% of GDP (2015 est.)
GDP - composition, by end use
household consumption: 77.7% (2017 est.)
government consumption: 13.8% (2017 est.)
investment in fixed capital: 23.1% (2017 est.)
investment in inventories: 0.7% (2017 est.)
exports of goods and services: 43.6% (2017 est.)
imports of goods and services: -58.9% (2017 est.)
GDP - composition by sector
agriculture: 14.2% (2017 est.)
industry: 28.8% (2017 est.)
services: 57% (2017 est.)
Population below poverty line
29.6% (2014)
Labor force
3.735 million (2017 est.)
Labor force - by occupation
agriculture: 39.2%
industry: 20.9%
services: 39.8% (2005 est.)
Unemployment rate
5.6% (2017 est.)
6.3% (2016 est.)

note: about one-third of the people are underemployed

Unemployment, youth ages 15-24
total: 7.9%
male: 5.6%
female: 12.1% (2017 est.)
Household income or consumption by percentage share
lowest 10%: 1.2%
highest 10%: 38.4% (2014)
Distribution of family income - Gini index
47.1 (2014)
45.7 (2009)
Budget
revenues: 4.658 billion (2017 est.)
expenditures: 5.283 billion (2017 est.)
Taxes and other revenues
20.3% (of GDP) (2017 est.)
Budget surplus (+) or deficit (-)
-2.7% (of GDP) (2017 est.)
Public debt
39.5% of GDP (2017 est.)
38.5% of GDP (2016 est.)
Inflation rate (consumer prices)
3.9% (2017 est.)
2.7% (2016 est.)
Central bank discount rate
6.25% (31 December 2010)
Commercial bank prime lending rate
19.26% (31 December 2017 est.)
19.33% (31 December 2016 est.)
Stock of narrow money
$2.827 billion (31 December 2017 est.)
$2.455 billion (31 December 2016 est.)
Stock of broad money
$2.827 billion (31 December 2017 est.)
$2.455 billion (31 December 2016 est.)
Stock of domestic credit
$13.3 billion (31 December 2017 est.)
$12.67 billion (31 December 2016 est.)
Market value of publicly traded shares

NA

Agriculture - products
bananas, coffee, citrus, corn, African palm; beef; timber; shrimp, tilapia, lobster, sugar, oriental vegetables
Industries
sugar processing, coffee, woven and knit apparel, wood products, cigars
Industrial production growth rate
4.5% (2017 est.)
Current Account Balance
-$380 million (2017 est.)
-$587 million (2016 est.)
Exports
$8.675 billion (2017 est.)
$7.841 billion (2016 est.)
Exports - commodities
coffee, apparel, coffee, shrimp, automobile wire harnesses, cigars, bananas, gold, palm oil, fruit, lobster, lumber
Exports - partners
US 34.5%, Germany 8.9%, Belgium 7.7%, El Salvador 7.3%, Netherlands 7.2%, Guatemala 5.2%, Nicaragua 4.8% (2017)
Imports
$11.32 billion (2017 est.)
$10.56 billion (2016 est.)
Imports - commodities
communications equipment, machinery and transport, industrial raw materials, chemical products, fuels, foodstuffs
Imports - partners
US 40.3%, Guatemala 10.5%, China 8.5%, Mexico 6.2%, El Salvador 5.7%, Panama 4.4%, Costa Rica 4.2% (2017)
Reserves of foreign exchange and gold
$4.708 billion (31 December 2017 est.)
$3.814 billion (31 December 2016 est.)
Debt - external
$8.625 billion (31 December 2017 est.)
$7.852 billion (31 December 2016 est.)
Exchange rates
lempiras (HNL) per US dollar -
23.74 (2017 est.)
22.995 (2016 est.)
22.995 (2015 est.)
22.098 (2014 est.)
21.137 (2013 est.)
Fiscal year
calendar year

Source: CIA World Factbook
This page was last updated on December 7, 2019

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