Economy - overview:
Honduras, the second poorest country in Central America, has an extraordinarily unequal distribution of income and high un- and underemployment. The economy relies heavily on a narrow range of exports, notably apparel, bananas, and coffee, making it vulnerable to natural disasters and shifts in commodity prices; however, investments in the maquila and non-traditional export sectors are slowly diversifying the economy. Nearly half of Honduras's economic activity is directly tied to the US, with exports to the US equivalent to 30% of GDP and remittances for another 22%. The US-Central America Free Trade Agreement (CAFTA) came into force in 2006 and has helped foster investment, but physical and political insecurity may deter potential investors. The economy is expected to register marginally positive economic growth in 2010, insufficient to improve living standards for the nearly 60% of the population in poverty. Despite improvements in tax collections, the government's fiscal deficit is growing due to increases in current expenditures from increasing public wages. Tegucigalpa lacks an IMF agreement; its Stand-By Agreement expired in April 2009 and former President ZELAYA's commitment to a fixed exchange rate undermined a follow-on.

GDP (purchasing power parity):
$33.14 billion (2009 est.)