Honduras Major Industries: Here's All You Need To Know

Honduras is Central America's poorest country.

Honduras is blessed with agricultural land, forest, and marine resources. It is a vibrant country from its culture to people and even clothes.

It is a mixture of people and tradition with proud heritage and culture. The Honduran government is chosen by its citizens. The President runs the government of Honduras. Central America has free access to the US market. Honduras has registered the second-highest economic growth in Central America. It is close to the markets of main developed countries.

With many facilities, international markets have increased their trade with Honduras. Because of the free trade agreement of Central America, many preferences are granted to the Honduran textiles industry.

Honduras had one of the highest economic growth rates in Latin America over the past few years, only behind Panama and well above the average in Latin America. Cattle raising is an important part of the Honduran economy. It is a Central American country located on the Caribbean coast to the north and the Pacific Ocean to the south.

Honduras is a Central American country that occupies a mountainous portion of the land bridge between North and South America. The tropical climate of the northern coast has very fertile land, which is suitable for banana plantations.

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Honduras Economy Facts

During the colonial era, the Spanish controlled Honduras, silver mining was one of the key economic activities in the country and one of the leading industries in the country. Agriculture, mining, and textile industry are some of the leading industries in the country at present.

An essential component of the Honduran economy is trade. Some of their main trading partners are the USA, Guatemala, and Mexico. Honduras's major industries include sugar processing, coffee, wood products, knit apparel. The tropical climate is suitable for banana cultivation, sugarcane, palm oil, and tropical fruits. Textile industries in Honduras have manufacturing facilities for socks, sportswear, underwear, and screen printing. In 2021, industrial growth was calculated to be 4.5%.

The Honduran economy relies heavily on natural resources. With its fertile land, mineral resources, the major products manufactured and produced are food products, beverages, textiles, clothing, chemicals, lumber, and paper products. Fishing is mainly done on the Caribbean coast. During the challenging pandemic, economic support was given to Salvadorans by modifying existing assistance programs.

It is the second country in Central America with arable land catering to its population. Honduran national government is chosen by its citizens. Honduran economy is based mostly on agriculture.

Government revenue includes value-added tax, income tax, tariffs. The Honduran government has given economic support during the pandemic, including an emergency focus on healthcare. Honduras is the largest producer of shrimp in Latin America. To prohibit the risk related to climate change and natural phenomena, local emergency plans have been formulated by the municipalities in the country.

Having setbacks at the domestic level and delayed political reforms, the country is looking forward to improving its business climate with improvements in foreign investment, stability of the economy, infrastructure development, concerns about security, and focusing on improving overall competitiveness and production.

It has multiple strengths with the potential for faster growth and higher shared progress. Efforts are being made for introducing more variety of its exports. The US has allocated $18 million for the Honduran police and military as part of an aid package.

Major Imports Of Honduras

The mining industry is operated in the country. Honduran economy has a market with little or no government control. Market forces are allowed to determine the price of agricultural products pt any other products. It is the second poorest country in Central America.

It has high unemployment, violence, and lacks opportunities. Railroads in Honduras serve the banana plantations. Honduran government provides initiatives for the plantations to thrive.

Main imports are fuels, consumer goods, and cereals. Its main import partner is the US, with 34% of total imports. Major imports are minerals, fuels and oil, pharmaceutical products, furniture, plastics, organic chemicals, and precious metals. Other import goods are communications equipment, machinery, and industrial raw materials, chemical products, fuels, and foodstuffs.

Major Exports Of Honduras

Honduras has a variety of economic systems like private freedom, a combination of economic planning, and government regulation. Public participation in government is encouraged by the agencies to maintain the separation of powers.

El Salvador is bordered on the northeast by Honduras. After becoming a sovereign state, El Salvador formed a short-lived union with Honduras. Honduras is known for producing coffee, shrimps, bananas, and pineapples. Honduras produces white corn on a large scale. The textile industry in Honduras also attracts other manufacturing industries, especially in activewear.

With its capital at Comayagua alternated with Tegucigalpa, Honduras was a principal administrative division of that kingdom within the viceroyalty of New Spain. Agriculture, which is the base of Central America, was slow to develop. Honduran gold mining town of Gracias became an important place in Central America.

Major cash crops are coffee and banana. Even melon, pineapple, cotton, sugarcane, African palm are important. Honduran agricultural sector is diversified with the rise of commercial export agriculture such as melon and pineapple.

The banning of US imports has caused a rise in the cost of production and transportation, which caused farmers to move towards growing sugarcane or African palm for biofuel, which government uses as a means of diversifying the Honduran agricultural sector.

Agricultural exports rose more for agricultural commodities like bananas and coffee. Its main agricultural exports are coffee and bananas. 41% of total exports are with the United States. Traditional agricultural exports are cocoa beans, logs and lumber, unprocessed gold, and other minerals.

Traditional cattle raising is the main livestock activity and has become an important export. Commercial export goods are coffee, automobile wire, harness, cigars, bananas, gold, palm oil, apparel, and fruit. Honduras is Central America's top textile exporter.

The country is the US's number one supplier of cotton t-shirts. Planting is done on genetically modified crops which are illegal in the rest of Central America. Fish products like shrimp and lobster are known to be widely exported.

Major Resources Of Honduras

Mineral resources consist of cadmium, cement, coal, copper, lead, gypsum, limestone, marble, salt, silver, and zinc. It is a leading export country. Honduras is known for its growing textiles industry, which serves the international market.

It has rich natural resources, including minerals, coffee, tropical fruit, and sugarcane. All these are utilized locally while others are exported. Due to the increased pollution, the water quality of the country has been affected.

Mining activities led to deforestation for clearing space for mining which caused a harmful effect on forest resources. This has caused a serious impact on soil fertility. As per the law, hardwood species are prohibited from export. Hardwood species from natural forests only can be exported as processed wood.

Forest resources include timber wood products. As the Honduran forest area is located mainly in the country's lower north and east parts, abundant forest resources are obtained from here. It is a place where there is plenty of rainfall which is beneficial for that area. Marketable timber is produced as an important economic resource, but the majority of national income is obtained by growing banana crops.

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