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Honduras:
Recent Economic Performance
Jose Antonio Cordero
November 2009
Center for Economic and Policy Research
1611 Connecticut Avenue, NW, Suite 400
Washington, D.C. 20009
202-293-5380
CEPR Honduras: Recent Economic Performance i
Contents
Executive Summary 1
Introduction 3
General Information: Some Macroeconomic Indicators 4
Production and Growth
Price Stability 8
Monetary and Fiscal Policy 9
The Foreign Sector11
Poverty, Social and Political Conflict, and the Need for Reforms 16
Minimum Wage Reform17
Other Reforms19
The Current Situation20
Conclusion 21
References22
About the Author
Jose A. Cordero is a Senior Economist at the Center for Economic and Policy Research in
Washington, DC.
Acknowledgements
The author thanks Jake Johnston for research assistance and Mark Weisbrot and Rebecca Ray for
helpful comments.
CEPR Honduras: Recent Economic Performance 1
Executive Summary
Honduras is the third poorest country in Latin America, ahead of only Nicaragua and Guyana. It has
a long history of political and economic instability, which had finally been brought under control by
the end of
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