Euromoney Country Risk


Read the latest analysis on sovereign, geo-political and structural risk

Get up to date country risk ratings in 186 countries

Member login

Lost your password?

Euromoney Country Risk

Euromoney Country Risk
List of countries.

Honduras Honduras

Overview Change score Analyses Experts
Sponsored section
Honduras – Quick View
ECR score46.34 (Mar 2011)
ECR rank80 (Mar 2011)
GDP 2010USD 15.11 billion
GNI per capita PPP 2009USD 1,517
FDI inflow 2010USD 797.39 million
Inflation 20105.70%
Central bank assets 2010USD 4,908.94 million
Unemployment rate 20104.60%
Government deficit 2009USD 64.10 million
Tax revenue 2009USD 2,126.16 million
Government typeDemocratic Constitutional Republic
Recent political crisis2008 coup
Economic freedom score99th
Freedom of information score128th
Corruption perception index130th
Crude Birth rate 200927 (per ‘000 population)
Population balanceUnder 14 - 37.4%
Population balanceMen over 60 – 5.8%
Population balanceWomen over 60 - 6.4%
Life expectancy years 2009Male 69.8
Life expectancy years 2009Female 74.5
Mortality rate 200925 (per '000 live births)
Literacy rate 201083.6%
Internet access12%

[Top] Economic Overview

The economy in Honduras has been growing at a slow pace. It is primarily dependent on agricultur, with coffee, bananas and sea food making up the majority of exportation.


Gross Domestic Product (GDP)

Honduran GDP experienced growth from 2005 to 2008. In 2010, GDP is registered at HNL 290.86 billion.

Honduras GDP (current prices) (HNL billion)

(Source: Central Bank) p = Preliminary, a = Appraisal, e = Estimated

GDP Growth Rate

In 2005, the GDP growth rate of the country was registered at 13.8%, declining overall to reach 2.5% by the end of 2009.

Honduras GDP growth rate (%)

(Source: Central Bank

Gross National Income (GNI) per capita PPP

The nation’s Gross National Income (GNI) per capita PPP increased from USD 1,096 in 2005, to USD 1,517 in 2009.

  Honduras GNI at PPP (USD)

(Source: Central Bank)

Inflation rate

Honduras has been experiencing fluctuating inflation rates since 2005. 

 Honduras Inflation rate (consumer prices) (%)


Tax rate

Individual income tax rate levied in the country is 25%, and similarly, corporate income tax is also 25%. VAT rate in the country is 12%.  

(Source: Tax Rates)

Corporate tax

Tax contribution

Total tax rate (% profit)

Corporate income tax


Social security tax


Municipal tax on industry and commerce


Solidarity tax


Fixed assets tax


Pension contribution -RAP


Professional training tax -INFOP


Capital gains tax


Fuel tax


Municipal property tax


Vehicle tax


(Source: Doing

FDI inflow

From 2005 to 2008, Foreign Direct Investment (FDI) inflow in Honduras witnessed steady growth.

Honduras FDI inflow (USD million)

p= Preliminary

(Source: Central Bank) p= Preliminary

Central bank assets

In 2010, the central bank’s total assets were registered at HNL 94,485.68 million.

Honduras Central bank assets (HNL million)

(Source: CentralBank of Honduras)

[Top] Financial Indicators & Government Financial

Consumer price index (CPI)

Consumer price index in Honduras has experienced a steady growth from 2005 to 2011.

Honduras Consumer price index

(Source: CentralBank)

Interest rates

In 2010 (October), the interest rates were registered at 4.06% on saving deposits and 8.95% on term deposits.


Honduras Interest rate (%)


 (Source: Central Bank)

Money supply

‘Banco Central de Honduras’ is the regulatory authority of the country’s monetary sector. From 2005 to 2010, money supply showed steady rise. As of 2011 (January), total currency in circulation is registered at HNL 18,711.3 million.


Honduras Currency in circulation (HNL million)

(Source: Central Bank) 

Official exchange rate


The exchange rate of HNL per USD has recorded a constant rate of 19.03 since 2006.

Honduras Exchange rate (Average) (HNL/USD)

(Source: Central Bank)

Government finances

 Fiscal balance (HNL million)




Total Revenue





Total Expenditure





Fiscal Balance



(Source: Central Bank of Honduras)

The fiscal balance registered a deficit of 1,233 million in 2009, while it was recorded a surplus of HNL 10,615.5 million in 2008.


Public debt levels

Public Debt levels in Honduras have increased annually from HNL 21,017.0 million in 2009, to HNL 35,390.3 in 2011.

Honduras Public sector domestic debt (HNL million)

(Source: Central Bank)

Total Revenue (HNL million)







Social contributions



Transfers and grants



Other revenue



Total Revenue



(Source: Central Bank of Honduras)

The country's revenue in 2009 was recorded at HNL 64,604.8 million, decreasing 5% from the 2008 figure of HNL 68,092.3 million.

Tax revenue

Tax revenues in Honduras decreased by 7.02% in 2009, amounting to HNL 40,919.4 million.

Total grants

Grants to Honduras amounted to HNL 5,095.2 million in 2009.

(Source: Central Bank of Honduras, Select ‘Economical Statistics’: Data Summary Page)

Current account balance

Honduras registered a current account deficit from 2005 to 2010.

Honduras Current account balance (USD million)


(Source: Central Bank, Select ‘Quarterly 2004-10’) p= Preliminary

Balance of payments

The country’s balance of payments registered surplus in 2005 and 2006. However, thereafter, it experienced continual deficits till 2010.

Honduras Balance of payments (USD million)


p= Preliminary

(Source: Central Bank)

[Top] Labour Force and Employment Overview

Unemployment rate

Estimated Unemployment rate in Honduras recorded an overall rise from 2005 to 2010.

Honduras Unemployment rate (%)


Labour force participation rate

Total labour force participation rate in Honduras was 62% for 2008. Specifically, for females, the participation rate was 42% while for males it was 83%.

(Source: World Bank)

Minimum wage

Minimum wage limits prevailing in the country in 2010 are:

  • HNL 5,500 (USD 289) per month for workers in urban areas
  • HNL 4,450 (USD 234) per month for rural workers

 (Source: Honduras Weekly)

Level of unionization         

The labour force in Honduras has been heavily unionized. In the early 90s nearly 40% of urban workers were part of some union. The major labour unions in the country are:

  • General Workers' Confederation (CGT)
  • United Workers' Confederation (CUTH)

Furthermore, the country has a history of protests and demonstrations by workers leading to military action


[Top] Political Stability

The current president Porfirio Lobo of the PNH won the presidency in the 2009 elections. These elections were not on the schedule, however they came about as a resolution to the crisis which had lead to forcible removal of the then president Manuel Zelaya in June 2009.  In the interim the country was lead by president , Roberto Micheletti, however, he was not recognized internationally.

The political crisis in Honduras triggered mass protests, demonstrations and a suspension of multilateral finance and membership of the OAS (Organisation of American States). The country returned to normal after the formation of the current government. The international relations were restored slowly as the US, IMF and World Bank have announced intention to restore funding to the country.

Further back in history, Honduras experienced a military coup in 1963 when the democratically elected government was overthrown. This started an event of military actions which ended after two decades in 1981 when Honduras shifted to a democratic government.

Currently, Honduras has five registered political parties:

  • National Party (Partido Nacional de Honduras: PNH)
  • Liberal Party (Partido Liberal de Honduras: PLH)
  • Social Democrats (Partido Innovación y Unidad-Social Demócrata: PINU-SD)
  • Social Christians (Partido Demócrata-Cristiano de Honduras: DCH)
  • Democratic Unification (Partido Unificación Democrática)

Out of the five parties, two parties have dominated the political scenario since the return of democratic set up - Partido Nacional and the Partido Liberal

 (Source: Country Studies)

Regulatory environment in Honduras

The government in Honduras is based on a Constitutional Republic framework which means that the head of the state is the representative of the people, chosen by the people and is bound to govern by the constitutional law. 

Honduras Economic Freedom Index


The country’s economic freedom score is 58.3, making its economy the 99th freest in the 2010 Index. Honduras ranks 20th out of 29 regional countries in the Central and South America. 


Corruption perception

The Corruption Perceptions Index (CPI) is a survey to measure the perceived level of corruption across countries worldwide. Honduras is ranked 130th on this list which indicates that the corruption levels in public departments in the country are fairly high, especially when compared to neighbouring nations such as El Salvador and Guatemala.

Honduras has slipped on the CPI rankings since 2008, when it was ranked 126th with a score of 2.6.


Freedom of information

Media in Honduras is restricted. For example, journalists in the country may be asked to reveal sources.  Therefore they must work to avoid offending politicalor economic interests of media owners.

(Source: BBC)

World Press Freedom Index 2009 ranks Honduras at 128th rank with a score of 42.00 which indicates that media in Honduras is restricted.



  • El Heraldo
  • La Prensa
  • El Tiempo
  • La Tribuna
  • Honduras This Week

Judicial system

The judiciary in Honduras consists of:

  • Supreme Court of Justice
  • Courts of appeal
  • Courts of first instance (Juzgados de Letras)
  • Justices of the peace

The Supreme Court is the highest court of justice. It has nine principal justices and seven alternates. The Supreme Court has three chambers, civil, criminal, and labour, and each chamber is assigned three judges. Furthermore, the court has fourteen constitutional powers and duties which include:

  • Appointment of judges and justices of the lower courts and public prosecutors
  • The power to declare laws to be unconstitutional;
  • Power to try high-ranking government officials when the National Congress has declared that there are grounds for impeachment
  • Publication of the court's official record.

(Source: Country Studies)

[Top] Demographic Overview

Population showed annual growth from 2005 to 2010. Specifically, the population increased from 6.89 million in 2005 to 7.6 million in 2010.

Population by Gender


The gender ratio in the country is balanced. Specifically, there are about 99.8 males for every 100 females in the country. 

(Source: UN)

Honduras Population by gender, 2009 (%)

Gender ratio

The country’s gender ratio was recorded at 104.2 men per 100 women in 2010.

(Source: undp, page: 182)

The population of below 14 year olds, constituted 37.4% of the total population in 2009. In the same year, 6.4% women and 5.8% men (% of total population) were aged above 60.

Mortality rate

The mortality rate of infants (per 1,000 live births) was registered at 25 in 2009. Alternatively, the mortality rate for adults females was recorded at 120 deaths (per 1,000), as compared to 172 adult male deaths (per 1,000). Furthermore, the average life expectancy in Honduras for men is 69.8 years and for females it is 74.5 years (2009).

(Source: UN, World Bank)

Birth rate

In 2009, the crude birth rate was registered at 27%.   


 Migration and urbanisation

In 2010, 51.6% of the population was classified as urban.

(Source: undp, page: 182) 

International migrant stock, till mid 2010, was recorded at 24.3 thousand people, approximately 0.3% of the entire population

(Source: UN)


Ethnic groups in Honduras include:

  • Mestizos
  • Amerindians
  • Blacks
  • Caucasians

Nearly 97% of people are Roman Catholics.


Human Development Index (HDI)

The country ranks 112th out of 182 countries on the Human Development Index 2009 conducted by the United Nations. The HDI provides a composite measure of three dimensions of human development: living a long and healthy life (measured by life expectancy), being educated (measured by adult literacy and gross enrolment in education) and having a decent standard of living (measured by purchasing power parity, PPP, income). 

(Source: UNDP)

[Top] Soft Infrastructure


The country’s literacy rate for 2010 was 83.6%.


Honduran constitution formally instructs that children should have six years of compulsory education, but the majority of the population remains illiterate. The state government suffers from inadequate funds and poor management.  

Education in Honduras is highly underdeveloped compared to other Central American countries. For example in 2004, there were hardly 32 children out of every 100 children in the country who had finished primary education without repeating grades.

(Source: Global


The ‘Ministry of Health’ is the governing body of the health sector in Honduras. It promotes health sector research and ensures the availability of adequate healthcare services to people. The ministry works in co-ordination with the Technical Council for Institutional Management to fulfill its objectives.

Leading causes of death in Honduras include: cardiovascular diseases, violence, vascular and brain diseases, intestinal infection and road accidents.

Only the Honduran Institute of Social services offers insurance financed private medical care for workers.

There are 6 national hospitals in Honduras,6 regional hospitals and 16 area hospitals. Additonally, there are smaller health care facilities that have been established to take care of rural areas and scarcely populated areas.

(Source:,Oxford Journal,

[Top] Hard Infrastructure

The mass public transport in the country is mainly by bus and cabs.


Major ports in Honduras are - Port of Coxen Hole, Port of La Ceiba, Port of Puerto Castilla, Port of Puerto Cortes, Port of San Lorenzo, and Port of Tela.

Source: (world port source)




Airport name

Runway length (ft.)

Bonito Oriental

Bonito Oriental


Catacamas Catacamas

Catacamas Catacamas



Coronel Enrique Soto Cano Ab



La Laguna


Islas Del Cisne I.

Islas Del Cisne I.


La Ceiba

Goloson Intl


La Esperanza

La Esperanza


La Lima

La Lima


Puerto Lempira

Puerto Lempira



Roatan International


San Pedro Sula

La Mesa Intl



Toncontin Intl





(Source: Air charter world)

Telecommunications networks

Telephone lines

In 2009, the number of fixed telephone line users in Honduras was recorded at 716,335.

Honduras Fixed telephone lines


Mobile cellular subscriptions

Mobile subscriptions witnessed a steady rise from 2005 to 2009, when it reached 8,390,75subscribers.

Honduras Mobile cellular subscriptions



In 2010, 0.9 million people, 12% of the total population, used the internet services. This registered a slight decline from 2009, when 12.2% of the population used the internet.

(, World Bank)

Euromoney country risk banner
All material subject to strictly enforced copyright laws.
© 2019 Euromoney Institutional Investor PLC.