Honduras: Economic Outline

Economic Indicators

The GDP's growth rate for 2012 is estimated to be around 4%. However, this growth depends of the economic health of the United States, the first investing country in Honduras.

The economy of Honduras is partly based on its agriculture which represents approximately 15% of its GDP and employs close to 40% of the workforce. The totality of the manufacturing sector represents a little less than one-third of GDP and employs 20% of the workforce in the "maquiladoras" (assembly plants). Finally, the Tertiary sector has a decisive impact on the economy of Honduras, it contributes to more than half of the gross domestic product and employs nearly 40% of the active population.

The transfers from expatriates, known as "remesas" constitute 17% of GDP. It is the first source of foreign exchange in the country, even before the exports from the industrial free zones, coffee sales and tourism. The country has certain assets that contribute to support its economic development, especially a good level of productivity as well as the decentralization and privatization of several sectors. Even though, the country continues to display a significant unemployment rate due to the elimination of thousands of jobs in the subcontracting factories. In addition, the public deficit has surpassed the amount that the IMF had established through an agreement signed in 2010.

Main Indicators	2009	2010	2011	2012 (e)	2013 (e)
GDP (billions USD)	14.13	15.35e	17.25e	18.48	20.14
GDP (Constant Prices, Annual % Change)	-2.1	2.8	3.5e	3.5	4.0
GDP per Capita (USD)	1,793e	1,908	2,105e	2,213	2,369
General Government Gross Debt (in % of GDP)	24.1	26.3	27.6e	27.8	27.9
Inflation Rate (%)	8.7	4.7	7.8e	7.9	7.0
Current Account (billions USD)	-0.52	-0.96	-1.11e	-1.15	-1.19
Current Account (in % of GDP)	-3.7	-6.2	-6.4	-5.9	-

Source: IMF - World Economic Outlook Database - Last Available Data.

Note: (e) Estimated Data

Monetary Indicators	2008	2009	2010
Foreign Debt (million USD)	3,508	3,675	-
Honduras Lempira (HNL) - Average Annual Exchange Rate For 1 USD	18.90	18.90	18.90

Source: World Bank - Last Available Data.

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Main Sectors of Industry

Breakdown of Economic Activity By Sector	Agriculture	Industry	Services
Employment By Sector (in % of Total Employment)	34.6	22.2	43.2
Value Added (in % of GDP)	11.5	25.0	63.6
Value Added (Annual % Change)	0.0	-23.0	19.4

Source: World Bank - Last Available Data.

Socio-Demographic Indicators	2011	2012 (e)	2013 (e)
Unemployment Rate (%)	4.4	4.4	4.4

Source: World Bank - Last Available Data

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The Active Population in Figures

	2010
Labor Force	3,394,000

Source: CIA - The world factbook

	2009	2010
Total activity rate	-	59.90%
Men activity rate	80.20%	-
Women activity rate	40.10%	-

Source: UN - United Nations

Indicator of Economic Freedom

Score:: 58.6/100
Position:: Mostly unfree
World Rank:: 94/179
Regional Rank:: 17/26

Distribution of Economic freedom in the world
Source: 2011 Index of Economic freedom, Heritage Foundation

Note: The Economic freedom index measure ten components of economic freedom, grouped into four broad categories or pillars of economic freedom: Rule of Law (property rights, freedom from corruption); Limited Government (fiscal freedom, government spending); Regulatory Efficiency (business freedom, labor freedom, monetary freedom); and Open Markets (trade freedom, investment freedom, financial freedom). Each of the freedoms within these four broad categories is individually scored on a scale of 0 to 100. A country’s overall economic freedom score is a simple average of its scores on the 10 individual freedoms.

Country Risk

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Indicator of Political Freedom

Ranking:: Partly Free
Political Freedom:: 4/7
Civil Liberties:: 4/7

Map of freedom 2010
Source: Freedom House

Note: The Indicator of Political Freedom provides an annual evaluation of the state of freedom in a country as experienced by individuals. The survey measures freedom according to two broad categories: political rights and civil liberties. The ratings process is based on a checklist of 10 political rights questions (on Electoral Process, Political Pluralism and Participation, Functioning of Government) and 15 civil liberties questions (on Freedom of Expression, Belief, Associational and Organizational Rights, Rule of Law, Personal Autonomy and Individual Rights). Scores are awarded to each of these questions on a scale of 0 to 4, where a score of 0 represents the smallest degree and 4 the greatest degree of rights or liberties present. The total score awarded to the political rights and civil liberties checklist determines the political rights and civil liberties rating. Each rating of 1 through 7, with 1 representing the highest and 7 the lowest level of freedom, corresponds to a range of total scores.

Indicator of Freedom of the Press

World Rank:: 136/179
Evolution:: 7 places up compared to 2010

Source: Worldwide Press Freedom Index 2011, Reporters Without Borders

Note: The world rankings, published annually, measures the violations of press freedom worldwide. It reflects the degree of freedom enjoyed by journalists, the media and digital citizens of each country and the means used by states to respect and uphold this freedom. Finally, a note and a position is assigned to each country. To compile this index, Reporters Without Borders (RWB) prepared a questionnaire sent to partner organizations,150 RWB correspondents, journalists, researchers, jurists and activists of human rights, including the main criteria - 44 in total - to assess the situation of press freedom in a given country. It includes every kind of direct attacks against journalists and digital citizens (murders, imprisonment, assault, threats, etc.) or against the media (censorship, confiscation, searches and harassment etc.).

Sources of General Economic Information

Main Online Newspapers and Portals: Honduras Newspapers
Honduras News
Honduras Newspapers and News Sites
Honduras News

Useful Resources: Ministry of Finance
Central Bank

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