Honduras Economy - 2021

Economic 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.

Real GDP growth rate

4.8% (2017 est.)

3.8% (2016 est.)

3.8% (2015 est.)

Inflation rate (consumer prices)

4.3% (2019 est.)

4.3% (2018 est.)

3.9% (2017 est.)

Credit ratings

Moody's rating: B1 (2017)

Standard & Poors rating: BB- (2017)

Real GDP (purchasing power parity)

$55.825 billion (2019 est.)

$54.382 billion (2018 est.)

$52.444 billion (2017 est.)

note: data are in 2017 dollars

GDP (official exchange rate)

$25.145 billion (2019 est.)

Real GDP per capita

$5,728 (2019 est.)

$5,672 (2018 est.)

$5,562 (2017 est.)

note: data are in 2017 dollars

Gross national saving

22% of GDP (2019 est.)

20.5% of GDP (2018 est.)

23.6% of GDP (2017 est.)

GDP - composition, by sector of origin

agriculture: 14.2% (2017 est.)

industry: 28.8% (2017 est.)

services: 57% (2017 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.)

Ease of Doing Business Index scores

Overall score: 56.3 (2020)

Starting a Business score: 71.4 (2020)

Trading score: 64.3 (2020)

Enforcement score: 44.2 (2020)

Agricultural products

sugar cane, oil palm fruit, milk, bananas, maize, coffee, melons, oranges, poultry, beans

Industries

sugar processing, coffee, woven and knit apparel, wood products, cigars

Industrial production growth rate

4.5% (2017 est.)

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

Population below poverty line

48.3% (2018 est.)

Gini Index coefficient - distribution of family income

52.1 (2018 est.)

45.7 (2009)

Household income or consumption by percentage share

lowest 10%: 1.2%

highest 10%: 38.4% (2014)

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.)

Fiscal year

calendar year

Current account balance

-$380 million (2017 est.)

-$587 million (2016 est.)

Exports

$8.675 billion (2017 est.)

$7.841 billion (2016 est.)

Exports - partners

United States 53%, El Salvador 8%, Guatemala 5%, Nicaragua 5% (2019)

Exports - commodities

clothing and apparel, coffee, insulated wiring, bananas, palm oil (2019)

Imports

$11.32 billion (2017 est.)

$10.56 billion (2016 est.)

Imports - partners

United States 42%, China 10%, Guatemala 8%, El Salvador 8%, Mexico 6% (2019)

Imports - commodities

refined petroleum, clothing and apparel, packaged medicines, broadcasting equipment, insulated wiring (2019)

Reserves of foreign exchange and gold

$4.708 billion (31 December 2017 est.)

$3.814 billion (31 December 2016 est.)

Debt - external

$9.137 billion (2019 est.)

$8.722 billion (2018 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.)