economic reform program and
had posted strong annual growth numbers. The storm has dramatically
changed economic forecasts for Honduras, one of the poorest
countries in Central America and the hardest hit by Mitch. Honduras
sustained approximately $3 billion in damages and will probably see
GDP shrink by 2% in 1999 and unemployment rise. Hardest hit was the
all-important agricultural sector, which is responsible for the
majority of exports. As a result, the trade deficit is likely to
balloon in 1999 to $445 million. However, significant aid has helped
to stabilize the country. In addition, the Paris Club and bilateral
creditors have offered substantial debt relief, and Tegucigalpa is
currently under consideration for inclusion in the IMF-World Bank
Highly Indebted Poor Countries Initiative (HIPC). Additional
financing will be needed to restore the economy to its pre-Mitch
level.

GDP: purchasing power parity--$14.4 billion (1998 est.)

GDP--real growth rate: 3% (1998 est.)

GDP--per capita: purchasing power parity?$2,400 (1998 est.)

GDP--composition by sector:
agriculture: 20%
industry: 19%
services: 61% (1997)

Population below poverty line: 50% (1992 est.)

Household income or consumption by percentage share:
lowest 10%: 1.2%
highest 10%: 42.1% (1996)

Inflation rate (consumer prices): 14.5% (1998 est.)

Labor force: 1.3 million (1997 est.)

Labor force--by occupation: agriculture 37%, services 39%,
industry 24% (1996)

Unemployment rate: 6.3% (1997); underemployed 30% (1997 est.)

Budget:
revenues: $655 million
expenditures: $850 million, including capital expenditures of $150
million (1997 est.)

Industries: sugar, coffee, textiles, clothing, wood products

Industrial production growth rate: 10% (1992 est.)

Electricity--production: 2.73 billion kWh (1996)

Electricity--production by source:
fossil fuel: 12.09%
hydro: 87.91%
nuclear: 0%
other: 0% (1996)

Electricity--consumption: 2.734 billion kWh (1996)

Electricity--exports: 0 kWh (1996)

Electricity--imports: 4 million kWh (1996)

Agriculture--products: bananas, coffee, citrus; beef; timber;
shrimp

Exports: $1.3 billion (f.o.b., 1996)

Exports--commodities: bananas, coffee, shrimp, lobster, minerals,
meat, lumber

Exports--partners: US 54%, Germany 7%, Belgium 5%, Japan 4%, Spain
3% (1995)

Imports: $1.8 billion (c.i.f. 1996)

Imports--commodities: machinery an