Honduras Industry Sectors

 

 

Honduras’ industrial segment comprises limited small-scale firms with intermediate level of technology and limited processing skills. The major Honduras industries include sugar, coffee, textiles, clothing and wood products. Honduras industrial segment employs nearly 20% of the country’s population and contributes 28% to the GDP. Although the country has rich forest reserves and deposits of silver, lead, zinc, iron, gold, antimony and copper, inadequate infrastructure has hampered its exploitation and growth of the mining industry.[br]

Honduras Industry Sectors: Honduras Industrial Growth

Honduras traditionally has had limited industrial capacity with the country relying mainly on exports of agricultural products such as banana and coffee. However, the country made aggressive moves to expand its industrial base in the 1990s and made significant investments in the maquiladoras and non traditional export segments like cultivated shrimp, following the signing of the CAFTA. Increased investments have brought in new skills to the country, while adding jobs and boosting industrial growth in the recent years. However, adverse international conditions and the global financial crisis of 2007-09 have resulted in reduced export demand and downtrend in industrial growth. Honduras’ industrial growth has declined from 4.4% in 2007 to around 4% in 2008 and -9.5% in 2009.

 

 

Honduras Industry Sectors: Major Industries

The major products manufactured and processed in Honduras are food stuff, beverages, textiles, clothing, chemicals, lumber, and paper products. Most industrial plants are located in the urban areas of San Pedro Sula and Tegucigalpa, and the production of capital and heavy intermediate goods is minimal.[br]

 

While several factors, including political and environmental conditions, have restricted the growth of Honduras mining industry, the country’s maquila industry has grown by leaps and bounds due to favorable tax regime and low labor costs.

 

Honduras tourism, telecommunication, banking and other service industries contribute a hefty 58% of the country’s GDP while employing only 40% of its population. The country’s tourism sector has, however, been hit by the recent travel advisories by the US and other nations. The negative travel advisory followed a tussle between the US and Honduras over the legality of the removal of the latter’s President in early 2009.