Economy
Honduras is one of the poorest countries in the Hemisphere, with 65% of its people living in poverty. More than 60% of Hondurans are highly vulnerable to food insecurity, and the country is one of the most vulnerable in the world to natural disasters and climate change. Having just emerged from its worst political crisis in 25 years, Honduran democracy and governance are very weak – as evidenced by the large number of citizens who lack confidence in their institutions. Honduras is one of the most violent nations in the world , is a key transit point for drug trafficking, and has more gang members than all other Central American countries combined. The country also suffers from social inequality, soaring unemployment, poor health and education, and environmentally unsustainable practices.
Honduras’s major industries include sugar, coffee, bananas, textiles, shrimp, and wood products. The most abundant natural resources are timber, gold, silver, copper, lead, zinc, antimony, coal, and fish. The United States is by far Honduras's most important trade partner, accounting for 50% of Honduran exports and 41% of Honduran imports. In March 2006, the Central American-Dominican Republic Free Trade Agreement with the United States was ratified, and is expected to increase foreign investment, exports, and employment in Honduras.
Following almost $4 billion in debt relief (DOC 43kb) in 2006, Honduras succesfully completed the $215 million donation from the Millennium Challenge Corporation in 2010. The program had two goals: the first wa to increase productivity and business skills of farmers and the second was to reduce transportation costs between production centers and markets, through the construction of part of a highway that extends from the northern Port of Puerto Cortes to the southern border between Honduras and El Salvador.
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