The sector sustainable economic development plays a key role in the creation of income and employment for poorer population groups. More than 98 percent of companies are micro, small and medium enterprises (MSME). The rate of unemployment / underemployment is 29 percent. The unemployment rate among women is slightly higher than that of men, and on the average women earn 33 percent less than their male colleagues. Economic development in 2006 was positive – particularly in the above-cited potential growth sectors – with growth at 5 percent and inflation at 5.6 percent. There was a dramatic increase in remittances, which came to nearly US$ 3 billion in 2006.

The new Honduran Government views the creation of jobs as an important factor in the poverty reduction strategy. German Development Cooperation is active in sustainable economic development through a cooperative project involving Technical Cooperation and Financial Cooperation. GTZ, KfW, DED and CIM are active in policy advisory services, commercial services, financial services, youth employment and local economic development. With the support of German Development Cooperation, it has proved possible to give the topic of MSME promotion a higher profile and to see that important new instruments are sustainably introduced into both commercial and financial services.

The cooperative project PROMYPE (promotion of income and employment) works with both government and private institutions on the macro level to improve capacities and framework conditions for MSME promotion. On the meso level, advisory services serve to strengthen business associations, municipal associations and service providers. And on the micro level, instruments for local economic promotion and the obtaining of micro credits are promoted. The blend of intervention levels is considered a major advantage of this form of support.