

At 112,090 sq. km., it is slightly larger than Tennessee with a population of 7,483,763. The government is a democratic constitutional republic. The capitol is Tegucigalpa.
It has 18 departments Atlantida, Choluteca, Colon, Comayagua, Copan, Cortes, El Paraiso, Francisco Morazan, Gracias a Dios, Intibuca, Islas de la Bahia, La Paz, Lempira, Ocotepeque, Olancho, Santa Barbara, Valle, Yoro
GDP: agriculture: 13.6%
industry: 31.4%
services: 55% (2006 est.)
Honduras is the second poorest country in Central America and one of the poorest countries in the Western Hemisphere. It has an extraordinarily unequal distribution of income and massive unemployment, and is banking on expanded trade under the US-Central America Free Trade Agreement (CAFTA) and on debt relief under the Heavily Indebted Poor Countries (HIPC) initiative. The country has met most of its macroeconomic targets, and began a three-year IMF Poverty Reduction and Growth Facility (PRGF) program in February 2004. The economy relies heavily on a narrow range of exports, notably bananas and coffee, making it vulnerable to natural disasters and shifts in commodity prices. In recent years it has experienced a rapid rise in exports of light manufacturers. Growth remains dependent on the economy of the US, its largest trading partner, and on reduction of the high crime rate, as a means of attracting and maintaining investment.