The country’s current account balance has declined from -$1.977 billion in 2008 to -$247 billion in 2009 due to the global financial crisis and the consequent decline in trade. The country’s current account balance for the year 2007 stood at -$1.274 billion. The increase in the country’s current account deficit for 2008 is attributable to a sharp increase in global oil prices.
The United States, Honduras’ largest trading partner, accounts for over 60% of its exports and nearly 50% of imports. The association between the two countries strengthened after the ratification of the Central American Free Trade Agreement or CAFTA in 2005. The agreement has led to increased foreign investment in Honduras and a sharp growth in the country’s textile and apparel products industry.