US—Ambassador S. Crescencio ARCOS; Embassy at Avenida La Paz,
Tegucigalpa (mailing address is APO Miami 34022); telephone [504] 32-3120
_#_Flag: three equal horizontal bands of blue (top), white, and blue with five blue five-pointed stars arranged in an X pattern centered in the white band; the stars represent the members of the former Federal Republic of Central America—Costa Rica, El Salvador, Guatemala, Honduras, and Nicaragua; similar to the flag of El Salvador which features a round emblem encircled by the words REPUBLICA DE EL SALVADOR EN LA AMERICA CENTRAL centered in the white band; also similar to the flag of Nicaragua which features a triangle encircled by the words REPUBLICA DE NICARAGUA on top and AMERICA CENTRAL on the bottom, centered in the white band
_*Economy #_Overview: Honduras is one of the poorest countries in the Western Hemisphere. Agriculture, the most important sector of the economy, accounts for nearly 30% of GDP, employs 62% of the labor force, and produces two-thirds of exports. Productivity remains low. Industry, still in its early stages, employs nearly 9% of the labor force, accounts for 15% of GDP, and generates 20% of exports. The service sectors, including public administration, account for 50% of GDP and employ nearly 20% of the labor force. Basic problems facing the economy include rapid population growth, high unemployment, sharply increased inflation, a lack of basic services, a large and inefficient public sector, and the dependence of the export sector mostly on coffee and bananas, which are subject to sharp price fluctuations. Despite government efforts at reform and large-scale foreign assistance, the economy still is unable to take advantage of its sizable natural resources.
_#_GDP: $4.9 billion, per capita $960; real growth rate -1.0% (1990)
_#_Inflation rate (consumer prices): 35.2% (1990 est.)
_#_Unemployment rate: 15% unemployed, 30-40% underemployed (1989)
_#_Budget: revenues $1.4 billion; expenditures $1.9 billion, including capital expenditures of $511 million (1990 est.)
_#_Exports: $939 million (f.o.b., 1990);
commodities—bananas, coffee, shrimp, lobster, minerals, lumber;
partners—US 52%, FRG 11%, Japan, Italy, Belgium