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Honduras is one of the poorest countries in Latin America and has one of the world's highest murder rates. More than half of the population lives in poverty and per capita income is one of the lowest in the region. Poverty rates are higher among rural and indigenous people and in the south, west, and along the eastern border than in the north and central areas where most of Honduras' industries and infrastructure are concentrated. The increased productivity needed to break Honduras' persistent high poverty rate depends, in part, on further improvements in educational attainment. Although primary-school enrollment is near 100%, educational quality is poor, the drop-out rate and grade repetition remain high, and teacher and school accountability is low.

Honduras' population growth rate has slowed since the 1990s, but it remains high at nearly 2% annually because the birth rate averages approximately three children per woman and more among rural, indigenous, and poor women. Consequently, Honduras' young adult population - ages 15 to 29 - is projected to continue growing rapidly for the next three decades and then stabilize or slowly shrink. Population growth and limited job prospects outside of agriculture will continue to drive emigration. Remittances represent about a fifth of GDP.

Honduras, the second poorest country in Central America, suffers from extraordinarily unequal distribution of income, as well as high underemployment. While historically dependent on the export of bananas and coffee, Honduras has diversified its export base to include apparel and automobile wire harnessing.

Honduras’s economy depends heavily on US trade and remittances. The US-Central America-Dominican Republic Free Trade Agreement came into force in 2006 and has helped foster foreign direct investment, but physical and political insecurity, as well as crime and perceptions of corruption, may deter potential investors; about 15% of foreign direct investment is from US firms.

The economy registered modest economic growth of 3.1%-4.0% from 2010 to 2017, insufficient to improve living standards for the nearly 65% of the population in poverty. In 2017, Honduras faced rising public debt, but its economy has performed better than expected due to low oil prices and improved investor confidence. Honduras signed a three-year standby arrangement with the IMF in December 2014, aimed at easing Honduras’s poor fiscal position.

International Court of Justice (ICJ) ruled on the delimitation of "bolsones" (disputed areas) along the El Salvador-Honduras border in 1992 with final settlement by the parties in 2006 after an Organization of American States survey and a further ICJ ruling in 2003; the 1992 ICJ ruling advised a tripartite resolution to a maritime boundary in the Gulf of Fonseca with consideration of Honduran access to the Pacific; El Salvador continues to claim tiny Conejo Island, not mentioned in the ICJ ruling, off Honduras in the Gulf of Fonseca; Honduras claims the Belizean-administered Sapodilla Cays off the coast of Belize in its constitution, but agreed to a joint ecological park around the cays should Guatemala consent to a maritime corridor in the Caribbean under the OAS-sponsored 2002 Belize-Guatemala Differendum