Lagging integration in the Central American market

• In general merchandise, Central America has consolidated its position as Honduras's second most important trading partner for exports: its share rose from 21% in 2005 to nearly 28% in 2024. On the import side, the region's share has declinedFootnote 1^[1], but remains close to one fifth of the total (Figure 1).
• The largest shift is in goods for processing (maquila)Footnote 2^[2]. In 2005, maquila exports accounted for just over 7% of the total. In recent years, that share has stabilized at around 23%. Imports have grown steadily, rising from roughly 10% to 34% (Figure 2).

• By 2024, maquila accounted for nearly half of total exports to Central America (45%) and a quarter of imports (25%), underscoring the importance of the industry's value chains in the regionFootnote 3^[3] (Figure 3).

This visualization is currently only available in Spanish.

This visualization is currently only available in Spanish.

This visualization is currently only available in Spanish.

• In general merchandise, Honduran exports are concentrated mainly in Guatemala and El Salvador, with Guatemala's share growing steadily — closely tied to the deepening of the customs unionFootnote 6^[6] process that began in 2017 (Figure 4).
• Guatemala has also become the main supplier of general merchandise: in 2024 it accounted for half of imports, with smaller shares from Costa Rica and El Salvador (Figure 4).
• In maquila exports, El Salvador and Nicaragua are the main destinations, with Nicaragua rising sharply in recent years to reach USD 713 million in 2024Footnote 8^[8] — linked to the presence of major business groupsFootnote 7^[7] in both countries (Figure 5).
• Maquila imports have shifted in origin. El Salvador went from accounting for $8 of every $10 in 2005 to just over $3 of every $10 in 2024, gradually displaced by Nicaragua and Guatemala (Figure 5).

This visualization is currently only available in Spanish.

This visualization is currently only available in Spanish.

• Honduras's trade balance with Central America is mostly negative, with the exception of Nicaragua and Panama (Figure 6). In the Nicaraguan case, however, it is worth noting the high concentration of Honduran exports, which consist largely of apparelFootnote 9^[9] (BCH).
• The deficit stems mainly from general merchandise trade, where the gap with Guatemala is particularly large.
• In goods for processing, the balance is less unfavorable and has even been positive in some years; nevertheless, growing asymmetries with Guatemala persist.

This visualization is currently only available in Spanish.

• Their importance has grown on both the export and import sides, in value and relative weight alike. In 2024, these categories accounted for USD 2 billion in imports (45% of the total) and USD 858 million in exports (31% of the total) (Figure 7)Footnote 10^[10].
• A small number of products account for most of the trade:
  • In general merchandise, in the most recent year available, half of Honduran exports were concentrated in 20 productsFootnote 11^[11], while the top 20 importsFootnote 12^[12] represented more than a third of the total.
  • In maquila, regional trade is dominated by the textile industryFootnote 13^[13]. On average over the past five years, both Honduran exports (69.4%) and imports (43.5%) of goods for processing with Central America were concentrated in apparel.

This visualization is currently only available in Spanish.

• Based on its export basketFootnote 14^[14], Honduras's export diversity and economic complexity rank below most of its regional peers (Figure 8): only 3% of 2024 exports consisted of goods added to the export supply after 2009 (Atlas of Economic Complexity, Harvard Growth Lab).
• Honduras also ranks last on the Trade Facilitation IndicatorsFootnote 15^[15] (TFI) (Figure 9).
• In the context of nearshoring, estimates place Honduras 15th out of 20 Latin American countries and second-to-last in Central America (Larraín and Cifuentes, 2024)Footnote 16^[16].
• Honduras is also at a disadvantage in terms of land and maritime infrastructure. It has one of the lowest shares of paved road network in the region (23%) and port connectivity below that of Guatemala, Costa Rica, and Panama (BCIE, 2024; SIECA, 2025).

This visualization is currently only available in Spanish.

This visualization is currently only available in Spanish.

• Regional trade offers important opportunities to drive economic activity in Honduras. Trade openness stimulates exchange and has the potential to expand export demand and lower costs — but realizing these benefits fully, and keeping them from becoming a disadvantage, requires the right capabilities.
• Deeper regional integration in goods for processing points to experiences that could be replicated and spur productive diversification, provided that existing bottlenecks in infrastructure, regulation, and trade facilitation are addressed.
• In the current environment, marked by a US shift toward bilateral negotiations and more demanding trade conditions, Honduras's challenge is not only to preserve preferential access to the US market, but to build the internal capacity to reduce dependence on a few sectors and use regional integration more strategically as a platform for international engagement.