Then-president Carlos Roberto Flores estimated that Mitch reversed 50 years of progress in the country. Officials estimated it would take at least 15 years to rebuild completely. The national gross domestic product (GDP) only grew at a rate of 3% due to the storm, compared with 5.1% in 1997, due to damaged infrastructure and lingering effects. In 1999, the economy of Honduras contracted by 1.9%, largely due to the storm. The Honduran government increased spending by 24.7%,. much of it emergency funds to restore communications and provide relief, which caused economic deficits. This caused inflation to increase from 13.6% to 15.7%. The Honduran government adjusted its economic plan, including privatization of various federal entities. For two years, the government temporarily halted taxes to businesses affected by the hurricane.
