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Honduras
Republica de Honduras
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Economy - Honduras

Honduras is one of the poorest and least developed countries in Latin America, with nearly two-thirds of Hondurans living in poverty. Although historically dependent on exports of coffee and bananas, the economy has diversified over the past 20 years with the development of non-traditional exports such as cultivated shrimp, melons, and tourism, and the establishment of a growing maquila industry (primarily assembly for re-export of textiles and apparel). The maquila industry employs approximately 130,000 Hondurans. Honduras also has extensive forest, marine, and mineral resources, although widespread slash-and-burn agricultural methods and illegal logging continue to destroy Honduran forests. Family remittances from Hondurans living abroad (mostly in the United States) rose to an estimated $1.4 billion in 2005, or 15% of the countryís foreign exchange.

The 2005 exchange rate was 18.92 Honduran Lempira to the dollar, a slight devaluation from the 2004 rate of 18.21. Inflation, as measured by the consumer price index, was estimated at 9.2% in 2005. International reserves, which were $1.16 billion at end of 2003, rebounded to an estimated $2.23 billion in 2005. Unemployment was estimated at around 28% in 2005.

In 2005, Honduras reached completion point under the Heavily Indebted Poor Countries (HIPC) initiative, qualifying the country for multilateral debt relief. Honduras has also done well in maintaining its commitments under its 3-year International Monetary Fund (IMF) Poverty Reduction and Growth Facility program, begun in 2004.



This page was last updated on 7 July, 2008

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