Agriculture is the mainstay of the economy. Government plans seek to promote and expand the manufacturing sector, diversify agriculture, improve transportation facilities, and develop hydroelectric projects. In 1999 electricity production amounted to 3.3 billion kilowatt-hours, of which 65.56 % was hydroelectric. The national budget in 1995 included $713 million in revenue and $591 million in expenditure. The gross domestic product, which measures the total value of goods and services produced, was $5.4 billion in 1999.

Honduras is a poor nation, and the majority of Hondurans work under extremely difficult conditions. The government has, adopted more active economic policies since the mid-20th century. In 1954 striking banana workers led the trade union movement to one of its most resounding triumphs, which resulted in the promulgation (in 1955) of a labour code that is considered one of the most complete instruments of its kind in Latin America. The code has generally resulted in a higher standard of living for the worker and better operating conditions for business; labour laws are not always strictly applied, and some workplaces are substandard.

Honduras, one of the poorest countries in the Western Hemisphere, is banking on expanded trade privileges under the Enhanced Caribbean Basin Initiative and on debt relief under the Heavily Indebted Poor Countries (HIPC) initiative. While reconstruction from 1998's Hurricane Mitch is at an advanced stage, and the nation has met most of its macroeconomic targets, it failed to meet the IMF's goals to liberalize its energy and telecommunications sectors. Economic growth has rebounded nicely since the hurricane and should continue in 2001.