Honduras has been inhabited since well before the 1st century ce. The ruins at Copán in western Honduras indicate that the area was a major center of Maya civilization before the Maya migrated to the Yucatán Peninsula. Most of the Indigenous peoples are Lenca and live in the southwestern area of the country, near the Guatemala border, close to the most important Indigenous centers of the pre-Columbian period. Other Indigenous groups—such as the Jicaque, Miskito (Mosquito), and Paya—continue to live in the northeastern region of the country, although their communities are small.

Demographics and urban-rural breakdown

A pronounced shift in population took place during the early part of the 20th century from the interior to the hot, humid northern coast, where employment opportunities expanded with the growth of the banana industry under companies such as the United Fruit Company. As a result the northwestern lowlands, along with the western and southern highlands, became among the most densely populated regions of the country. Honduras’s population grew extremely fast during the mid-20th century, posing considerable challenges related to employment and housing. Although the rate of growth slowed somewhat by the 1990s, it remained well above the world average.

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Although Honduras historically had a predominantly rural population, more than half of Hondurans now live in urban areas. Urban growth accelerated rapidly during the 1980s and ’90s, particularly in cities such as Tegucigalpa, San Pedro Sula, and La Ceiba. Often rapid urbanization has led to overcrowded housing, suburban expansion, air and water pollution, and rising crime rates. Despite increasing urbanization, rural areas remain integral to Honduras’s economic and social fabric, particularly through agricultural production and the preservation of local and Indigenous traditions.

The economy

Honduras is one of the poorest countries in Latin America. Its economy is characterized by persistent structural challenges, including widespread poverty, income inequality, and limited formal employment opportunities. Although economic growth has occurred periodically since the mid-20th century, its benefits have been unevenly distributed, and long-term development has been constrained by social, political, and environmental factors.

Honduras’s economy is also strongly influenced by remittances, which are funds sent from abroad, particularly by Honduran migrants living in the United States. Moreover, the vast majority (more than 70 percent) of the labor force works within an informal economy, which reduces the state’s ability to collect taxes and constrains overall growth. Political instability and high levels of criminal violence have further complicated economic development, affecting both domestic enterprise and foreign engagement. Although successive governments have introduced measures aimed at improving economic management and social conditions, Honduras remains highly vulnerable to external economic pressures and environmental shocks, which continue to shape its economic prospects.

The country’s natural resources include agricultural lands along the northern coast and interior river valleys, extensive pine forests, and small deposits of silver, lead, zinc, and low-grade iron ore. Agriculture has historically shaped the country’s development, particularly export crops such as bananas and coffee, though the economy has diversified in recent decades to include manufacturing—especially textiles and apparel production concentrated in the northern industrial corridor. Economic activity continues to reflect regional variations in terrain and infrastructure, although urbanization and expanding trade have reduced the traditional divide between highland subsistence farming and lowland commercial agriculture.

Tourism has become an increasingly important component of the Honduran economy. The tourism sector accounted for about 10 percent of the country’s gross domestic product in 2024. Tourism had a sharp decline in 2020 because of the COVID-19 pandemic; however, international arrivals rebounded significantly, rising from fewer than 700,000 visitors in 2020 to nearly 2.8 million in 2024. Cruise tourism has accounted for the majority of this growth, with more than 1.8 million cruise passengers arriving in 2024, many through the Bay Islands, especially Roatán. In addition to coastal and marine tourism, archaeological and cultural attractions, most notably the UNESCO World Heritage Site of the ancient ruins of Copán, draw substantial numbers of visitors. Tourism generates significant foreign exchange earnings and has become an important element in the country’s efforts to diversify an economy historically dependent on agricultural exports and remittances.