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Honduras: Recent Economic Performance

Author

Listed:
  • Jose Antonio Cordero

Abstract

This paper looks at the Honduran economy, including longer-term trends, the pre-crisis years, and recent developments since the June 28th coup. It finds that poverty and inequality decreased significantly during the Zelaya administration, with rapid growth of more than 6 percent during the first two years. The government also increased school enrollment significantly by abolishing school fees, expanded school lunch programs, and raised the minimum wage by 60 percent. Some expansionary monetary policy was used to counter-act the global downturn in 2008. The paper finds that more recently, the Honduran economy has become especially vulnerable to the combined impacts of the world recession and the political crisis that has followed the military coup of June 28, 2009.

Suggested Citation

  • Jose Antonio Cordero, 2009. "Honduras: Recent Economic Performance," CEPR Reports and Issue Briefs 2009-42, Center for Economic and Policy Research (CEPR).
    • Handle: RePEc:epo:papers:2009-42
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    File URL: http://www.cepr.net/documents/publications/honduras-2009-11.pdf
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    References listed on IDEAS

    as
    1. -, 2009. "Preliminary Overview of the Economies of Latin America and the Caribbean 2009," Balance Preliminar de las Economías de América Latina y el Caribe, Naciones Unidas Comisión Económica para América Latina y el Caribe (CEPAL), number 978 edited by Eclac.
    2. repec:wbk:wbpubs:4367 is not listed on IDEAS
    3. Gindling, T.H. & Terrell, Katherine, 2010. "Minimum Wages, Globalization, and Poverty in Honduras," World Development, Elsevier, vol. 38(6), pages 908-918, June.
    4. -, 2008. "Preliminary Overview of the Economies of Latin America and the Caribbean 2008," Balance Preliminar de las Economías de América Latina y el Caribe, Naciones Unidas Comisión Económica para América Latina y el Caribe (CEPAL), number 971 edited by Eclac.
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    Citations

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    Cited by:

    1. Guillermo Cruces & Gary S. Fields & David Jaume & Mariana Viollaz, 2015. "The growth-employment-poverty nexus in Latin America in the 2000s: Honduras country study," WIDER Working Paper Series wp-2015-078, World Institute for Development Economic Research (UNU-WIDER).
    2. Andrés Ham, 2015. "Minimum wage violations in Honduras," IZA Journal of Labor & Development, Springer;Forschungsinstitut zur Zukunft der Arbeit GmbH (IZA), vol. 4(1), pages 1-19, December.
    3. Guillermo Cruces & Gary S. Fields & David Jaume & Mariana Viollaz, 2015. "The growth-employment-poverty nexus in Latin America in the 2000s: Honduras country study," WIDER Working Paper Series 078, World Institute for Development Economic Research (UNU-WIDER).
    4. Ham, Andrés, 2018. "The Consequences of Legal Minimum Wages in Honduras," World Development, Elsevier, vol. 102(C), pages 135-157.

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    More about this item

    Keywords

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    JEL classification:

    • I - Health, Education, and Welfare
    • I1 - Health, Education, and Welfare - - Health
    • I2 - Health, Education, and Welfare - - Education
    • I3 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty
    • O - Economic Development, Innovation, Technological Change, and Growth
    • O5 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies
    • O54 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Latin America; Caribbean

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