Honduras is the poorest country in Central America. It is the second poorest country in the entire Western Hemisphere only after Haiti.
More than half of Honduras' population lives in extreme poverty. According to The Adelante Foundation, over 66% of the population lives below the Word Bank poverty line of two dollars a day. Unemployment in 2002 was at 55%. There are many factors that play into the extreme poverty that Honduras is stricken with. In rural areas, the situation is even worse with 61% of families in rural areas living in very extreme poverty off of less than $1 per person per day.
One of the main causes of the poverty today is because of the destruction caused by Hurricane Mitch. The powerful hurricane was the fourth most powerful storm to ever be measured in the Atlantic. According to the Honduras Institute of Tourism, the storm left much of the nation in shambles and caused over 7000 deaths. It destroyed 8 percent of the countries agriculture and left nearly 20 percent of the population homeless. The economic progress that was being made in Honduras was completely devastated by Hurricane Mitch.
The storm contributed to decades of unsustainable, extractive industries. Overall, numerous mudslides helped cause catastrophic damage to the nation's transportation and communication systems. The mudslides also killed crops, livestock and destroyed homes. Mitch took away the little capital and material resources that small rural towns had barely ever had to begin with.

Most of this information was found at http://adelantefoundation.org