Economy of Nicaragua

Economy of Nicaragua

Currency	Nicaraguan córdoba (NIO, C$)
Fiscal year	Calendar year
Trade organizations	WTO, CAFTA-DR
Country group	Developing/Emerging[1] Lower-middle income economy[2]
Statistics
Population	6,359,689 (2023 est.)[3]
GDP	$18.83 billion (nominal, 2024)[4] $54.89 billion (PPP, 2024)[5]
GDP rank	127th (nominal, 2024) 123rd (PPP, 2024)
GDP growth	3.5% (2023 est.)[6]
GDP per capita	$2,599 (nominal, 2024)[5] $7,642 (PPP, 2024)[5]
GDP per capita rank	135th (nominal, 2024) 129th (PPP, 2024)
GDP by sector	agriculture: 15.5% industry: 24.4% services: 60% (2017 est.)[3]
Inflation (CPI)	4% (2024 est.)[5]
Population below poverty line	24.9% (2016 est.)[3]
Gini coefficient	46.2 high (2022 est.)[7]
Human Development Index	0.669 medium (2022)[8] (130th) 0.507 low IHDI (2022)[9]
Labor force	3,264,024 (2023 est.)[10] 62.4% (2023 est.)[11]
Labor force by occupation	agriculture: 31% industry: 18% services: 50% (2011 est.)[3]
Unemployment	3.5% (2023 est.)[12]
Main industries	food processing, chemicals, machinery and metal products, knit and woven apparel, petroleum refining and distribution, beverages, footwear, wood, electric wire harness manufacturing, mining
External
Exports	$6.95 billion (2021)[13]
Export goods	coffee, beef, gold, sugar, peanuts, shrimp and lobster, tobacco, cigars, automobile wiring harnesses, textiles, apparel
Main export partners	United States 56.1%  Mexico 11.1%  El Salvador 5.61% (2021)[13]
Imports	$8.65 billion (2021)[14]
Import goods	consumer goods, machinery and equipment, raw materials, petroleum products
Main import partners	United States 23.2%  China 12.9%  Mexico 9.93%  Guatemala 9.72%  Costa Rica 6.65%  El Salvador 5.69% (2021)[14]
FDI stock	N/A Abroad: N/A
Current account	−$694 million (2017 est.)[3]
Gross external debt	$11.31 billion (31 December 2017 est.)[3]
Public finances
Government debt	33.3% of GDP (2017 est.)[3][note 1]
Budget balance	−2% (of GDP) (2017 est.)[3]
Revenues	3.871 billion (2017 est.)[3]
Expenses	4.15 billion (2017 est.)[3]
Foreign reserves	$2.758 billion (31 December 2017 est.)[3]
Main data source: CIA World Fact Book All values, unless otherwise stated, are in US dollars.

The economy of Nicaragua is focused primarily on the agricultural sector. Nicaragua itself is the least developed country in Central America, and the second poorest in the Americas by nominal GDP. In recent years, under the administrations of Daniel Ortega, the Nicaraguan economy has expanded somewhat, following the Great Recession, when the country's economy actually contracted by 1.5%, due to decreased export demand in the American and Central American markets, lower commodity prices for key agricultural exports, and low remittance growth. The economy saw 4.5% growth in 2010 thanks to a recovery in export demand and growth in its tourism industry.^[15] Nicaragua's economy continues to post growth, with preliminary indicators showing the Nicaraguan economy growing an additional 5% in 2011.^[16] Consumer Price inflation have also curtailed since 2008, when Nicaragua's inflation rate hovered at 19.82%.^[17] In 2009 and 2010, the country posted lower inflation rates, 3.68% and 5.45%, respectively.^[17] Remittances are a major source of income, equivalent to 15% of the country's GDP, which originate primarily from Costa Rica, the United States, and European Union member states. Approximately one million Nicaraguans contribute to the remittance sector of the economy.

In early 2004, Nicaragua secured some $4.5 billion in foreign debt reduction under the International Monetary Fund and World Bank Heavily Indebted Poor Countries initiative. In April 2006, the US-Central America Free Trade Agreement went into effect, expanding export opportunities for Nicaragua's agricultural and manufactured goods. Textiles and apparel account for nearly 60% of Nicaragua's exports. In October 2007, the IMF approved an additional poverty reduction and growth facility program in support of the government's economic plans. Nicaragua relies on international economic assistance to meet internal- and external-debt financing obligations, although foreign donors curtailed this funding in response to widespread allegations of electoral fraud in Nicaragua's November 2008 elections.

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