Overview: Honduras is one of the poorest countries in the Western Hemisphere. Agriculture is the most important sector of the economy, accounting for 25% of GDP, employing 60% of the labor force, and producing two-thirds of exports. Productivity remains low, however, leaving considerable room for improvement. Although industry is still in its early stages, it employs nearly 15% of the labor force, accounts for 23% of GDP, and generates 20% of exports. The service sectors, including public administration, account for 48% of GDP and employ nearly 20% of the labor force. Basic problems facing the economy include a high population growth rate, a high unemployment rate, a lack of basic services, a large and inefficient public sector, and an export sector dependent mostly on coffee and bananas, which are subject to sharp price fluctuations.

GDP: $4.4 billion, per capita $850; real growth rate 4.0% (1988)

Inflation rate (consumer prices): 15% (1989 est.)

Unemployment rate: 12-15% unemployed, 30-40% underemployed (1989)

Budget: revenues $750 million; expenditures $1.1 billion, including capital expenditures of $NA (1989 est.)

Exports: $869 million (f.o.b., 1988 est.); @m5commodities--bananas, coffee, shrimp, lobster, minerals, lumber; @m5partners--US 52%, FRG 11%, Japan, Italy, Belgium

Imports: $933 million (c.i.f. 1988 est.); @m5commodities--machinery and transport equipment, chemical products, manufactured goods, fuel and oil, foodstuffs; @m5partners--US 39%, Japan 9%, CACM, Venezuela, Mexico

External debt: $3.4 billion (December 1988)

Industrial production: growth rate 5% (1988)

Electricity: 655,000 kW capacity; 1,983 million kWh produced, 400 kWh per capita (1988)

Industries: agricultural processing (sugar and coffee), textiles, clothing, wood products

Agriculture: bananas, coffee, corn, beans, sugarcane, rice, tobacco

Aid: US commitments, including Ex-Im (FY70-87), $1.1 billion; Western (non-US) countries, ODA and OOF bilateral commitments (1970-86), $690 million

Currency: lempira (plural--lempiras); 1 lempira (L) = 100 centavos

Exchange rates: lempiras (L) per US$1--2.00 (fixed rate); 3.50 parallel exchange and black-market rate (April 1989)

Fiscal year: calendar year

NOTE: The information regarding Honduras on this page is re-published from the 1989 World Fact Book of the United States Central Intelligence Agency. No claims are made regarding the accuracy of Honduras Economy 1989 information contained here. All suggestions for corrections of any errors about Honduras Economy 1989 should be addressed to the CIA.