<hdr>The World Factbook 1994: Honduras<nl>Economy</hdr><body>
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<item><hi format=bold>Overview:</hi> 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 20% of the labor force. Basic problems facing the economy include rapid population growth, high unemployment, 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. A far-reaching reform program initiated by former President CALLEJAS in 1990 is beginning to take hold. In 1993 the large fiscal deficit emerged as a key economic problem, the result of improvident state spending.
<item><hi format=bold>National product:</hi> GDP—purchasing power equivalent—$10 billion (1993 est.)
<item><hi format=bold>National product real growth rate:</hi> 3.7% (1993 est.)
<item><hi format=bold>National product per capita:</hi> $1,950 (1993 est.)
<item><hi format=bold>Agriculture:</hi> most important sector, accounting for more than 25% of GDP, more than 60% of the labor force, and two-thirds of exports; principal products include bananas, coffee, timber, beef, citrus fruit, shrimp; importer of wheat
<item><hi format=bold>Illicit drugs:</hi> transshipment point for cocaine; illicit producer of cannabis, cultivated on small plots and used principally for local consumption
<item><hi format=bold>Economic aid:</hi>
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<item>• <hi format=ital>recipient:</hi> US commitments, including Ex-Im (FY70-89), $1.4 billion; Western (non-US) countries, ODA and OOF bilateral commitments (1970-89), $1.1 billion
