The country of Honduras is located in Central America bordering the Caribbean Sea and the Gulf of Fonseca. Neighboring countries include Guatemala, El Salvador, and Nicaragua. The Honduran territory consists mainly of mountains, with narrow plains along the coasts, undeveloped lowland jungle La Mosquitia region in the northeast, and the populated lowland Sula valley in the northwest. The government system is a democratic constitutional republic; the chief of state and head of government is the president. Honduras has a mixed economic system which includes a variety of emerging private freedom, combined with centralized economic planning and government regulation.

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