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encircled by the word REPUBLICA DE NICARAGUA on top and AMERICA CENTRAL on
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:Honduras Economy

Overview:
Honduras is one of the poorest countries in the Western Hemisphere.
Agriculture, the most important sector of the economy, accounts for more
than 25% of GDP, employs 62% of the labor force, and produces two-thirds of
exports. Productivity remains low. Industry, still in its early stages,
employs nearly 9% of the labor force, accounts for 15% of GDP, and generates
20% of exports. The service sectors, including public administration,
account for 50% of GDP and employ nearly 20% of the labor force. Basic
problems facing the economy include rapid population growth, high
unemployment, sharply increased inflation, a lack of basic services, a large
and inefficient public sector, and the dependence of the export sector
mostly on coffee and bananas, which are subject to sharp price fluctuations.
Despite government efforts at reform and large-scale foreign assistance, the
economy still is unable to take advantage of its sizable natural resources.
GDP:
exchange rate conversion - $5.2 billion, per capita $1,050; real growth rate
- 0.3% (1991 est.)
Inflation rate (consumer prices):
26% (1991 est.)
Unemployment rate:
15% unemployed, 30-40% underemployed (1989)
Budget:
revenues $1.4 billion; expenditures $1.9 billion, including capital
expenditures of $511 million (1990 est.)
Exports:
$1.0 billion (f.o.b., 1991)
commodities:
bananas, coffee, shrimp, lobster, minerals, lumber
partners:
US 52%, Germany 11%, Japan, Italy, Belgium
Imports:
$1.3 billion (c.i.f. 1991)
commodities:
machinery and transport equipment, chemical products, manufactured goods,
fuel and oil, foodstuffs
partners:
US 39%, Japan 9%, CACM, Venezuela, Mexico
External debt:
$2.8 billion (1990)
Industrial production:
growth rate 2.9% (1989); accounts for 15% of GDP
Electricity:
575,000 kW capacity; 1,850 million kWh produced, 374 kWh per capita (1991)
Industries:
agricultural processing (sugar and coffee), textiles, clothing, wood
products
Agriculture:
most important sector, accounting for more than 25% of GDP, over 60% of the
labor force, and two-thirds of exports; principal products include bananas,
coffee, timber, beef, citrus fruit, shrimp; importer of wh