Honduras profile

Demography and Health

Honduras has a population of about 10.83 million in 2024, ranking roughly 88th in the world by size, with a likely youthful age structure given a birth rate of 22.0 per 1,000 people (2023). Life expectancy at birth stands at 72.9 years (2023), signaling modest improvements in health outcomes but still leaving room for gains in wellbeing. The crude death rate is 4.48 per 1,000 (2023) while under-five mortality remains a concern at 15.5 per 1,000 live births (2023), indicative of ongoing child health challenges in certain communities. The country faces notable poverty and nutrition pressures: 64.1% of the population live in national poverty, and 20.4% are undernourished (2022), underscoring that many households face food insecurity and limited access to essential services. Health system capacity appears constrained, with hospital beds totaling 0.66 per 1,000 people (2021) and current health expenditure at 8.28% of GDP (2022), along with per-capita health spending on a PPP basis around 227 international dollars (2022). Net migration is negative (-4,821 in 2024), suggesting out-migration as households seek opportunities abroad, which can strain domestic labor markets and public finances while potentially remitting support to families. These indicators collectively portray a country with a large need for targeted health and social programs, particularly for maternal and child health, nutrition, and rural health access, alongside scalable investments in health infrastructure and human capital.

Economy

Honduras exhibits a low-to-middle income profile with GDP per capita of $3,426 in 2024 and GDP per capita at purchasing power parity of $7,486, reflecting a higher standard of living when adjusted for relative price levels but still well below regional and global peers. The economy shows moderate price stability, with inflation at 4.61% in 2024, supporting a predictable consumer environment though subject to external shocks. Unemployment stands at 6.07% in 2023, indicating some slack in the labor market, while poverty remains a defining feature—64.1% of the population live under national poverty lines (2023). The economy is open but highly dependent on external trade, with imports comprising 57.6% of GDP and exports 33.5% (2024), implying a tendency toward trade deficits financed by capital flows. Growth is tempered by governance challenges, as reflected in weak regulatory quality (-0.551), rule of law (-1.1), and control of corruption (-1.11), which can hinder higher-quality investment and private-sector development. The country records a current account deficit of 4.61% of GDP (2024) and attracts modest foreign direct investment at 3.53% of GDP (2024), suggesting some external financing but not enough to dramatically elevate productive capacity. High-technology exports are relatively small, totaling about $86.4 million (2023), signaling limited advanced manufacturing sophistication and a continued reliance on lower-value sectors. Taken together, these dynamics point to an economy with potential for growth through structural reforms, improved governance, and diversification into higher-value activities, while addressing poverty, inequality, and resilience to external price and demand shocks.

Trade and Investment

Honduras operates as a moderately open but structurally trade-dependent economy. Exports of goods and services amounted to 33.5% of GDP in 2024, while imports consumed 57.6% of GDP, indicating a persistent trade deficit that relies on financial inflows and external financing to sustain growth. The logistics environment appears relatively strong by global standards, with a Logistics Performance Index score of 2.7 (2022) and a high-world ranking of 19 in quality of trade and transport-related infrastructure, suggesting efficient customs, transport, and supply chains compared with many peers. Foreign direct investment net inflows reach 3.53% of GDP (2024), reflecting a modest but meaningful level of external capital willing to support domestic projects, though governance indicators—Regulatory Quality (-0.551), Rule of Law (-1.1), and Control of Corruption (-1.11)—signal risks that could deter larger, confidence-building investments. The country’s high-road potential lies in improving investment climate, strengthening property rights and contract enforcement, and expanding capacity in higher-value export sectors such as technology-intensive goods, while maintaining a diversified import base for essential capital goods and intermediate inputs.

Governance and Institutions

Honduras faces notable governance challenges, as reflected in several World Bank governance indicators: Political Stability and Absence of Violence/Terrorism at -0.459 (2023), Regulatory Quality at -0.551, Rule of Law at -1.1, and Control of Corruption at -1.11, with Government Effectiveness at -0.795. These negative values suggest vulnerabilities in political stability, regulatory efficiency, judicial independence, and anti-corruption enforcement. Such weaknesses can impede credible policymaking, deter foreign and domestic investment, and complicate the delivery of essential public services. Despite these challenges, the Logistics Performance Index score of 2.7 and a relatively high global rank of 19 in logistics infrastructure imply functioning corridors for trade and productive activity, highlighting a potential wedge whereby improved governance could translate into enhanced economic performance. Addressing corruption, strengthening the rule of law, and implementing credible regulatory reforms would likely boost investor confidence, improve public service delivery, and support more inclusive, sustainable growth in the medium term.

Infrastructure and Technology

Infrastructure and technology in Honduras exhibit a mixed picture. Internet usage stands at 58.3% of the population in 2023, signaling growing digital participation but leaving a sizable portion of citizens without online access. The country’s capacity in high-technology exports is modest at about $86.4 million in 2023, pointing to limited advanced manufacturing and innovation activity. The health-infrastructure indicator shows 0.66 hospital beds per 1,000 people (2021), underscoring a relatively thin inpatient capacity in many areas. Nevertheless, the logistics dimension fares comparatively well, with a 2.7 score on the Logistics Performance Index and a strong global standing (rank 19) for trade and transport infrastructure quality, suggesting that freight movements and supply chains are reasonably efficient relative to peers. The energy mix includes renewable resources, with renewable energy consumption making up 45.9% of total final energy consumption (2021), signaling progress toward cleaner energy and potential resilience against fossil-fuel price shocks. As Honduras deepens its digital economy, expanding internet access, boosting digital skills, and investing in productive ICT infrastructure could unlock productivity gains, while targeted support for science and technology ecosystems would help lift the share of high-tech exports and diversify exports away from commodity-sensitive sectors.

Environment and Sustainability

On environmental and sustainability indicators, Honduras shows a blend of vulnerability and progress. Renewable energy accounts for 45.9% of total final energy consumption (2021), indicating a substantial shift toward cleaner energy sources relative to fossil fuels, which supports lower emissions and climate resilience. Total greenhouse gas emissions excluding LULUCF per capita are 2.15 t CO2e per person (2023), a relatively low intensity by global standards, though total emissions depend on population growth and energy choices. The water-stress indicator, level of freshwater withdrawal as a proportion of available freshwater resources, is 4.62 (ranked 127), hinting at pressure on water resources in parts of the country and potential regional disparities in access to water for households and agriculture. The country faces climate and development trade-offs common to many lower-middle-income economies: expanding energy access and economic growth while maintaining environmental integrity and adapting to hydrological variability and drought risk. Addressing water security, investing in climate-resilient infrastructure, and continuing to diversify energy toward renewables will help Honduras advance sustainable development while keeping emissions in check and improving livelihoods for vulnerable communities.