Economy Of Nicaragua

Economy overview Nicaragua, one of the hemisphere's poorest countries, faces low per capita income, massive unemployment, and huge external debt. Distribution of income is one of the most unequal on the globe. While the country has made progress toward macroeconomic stability over the past few years, GDP annual growth of 1.5% - 2.5% has been far too low to meet the country's need. Nicaragua will continue to be dependent on international aid and debt relief under the Heavily Indebted Poor Countries (HIPC) initiative. Nicaragua has undertaken significant economic reforms that are expected to help the country qualify for more than $4 billion in debt relief under HIPC in early 2004. Donors have made aid conditional on the openness of government financial operation, poverty alleviation, and human rights. A three-year poverty reduction and growth plan, agreed to with the IMF in December 2002, guides economic policy.
 
GDP purchasing power parity - $11.6 billion (2004 est.)
 
GDP - real growth rate 2.3% (2004 est.)
 
GDP - per capita purchasing power parity - $2,300 (2004 est.)
 
GDP - composition by sector
agriculture: 28.9%
industry: 25.4%
services: 45.7% (2004 est.)
 
Investment gross fixed 28.1% of GDP (2004 est.)
 
Population below poverty line 50% (2001 est.)
 
Household income or consumption by percentage share
lowest 10%: 0.7%
highest 10%: 48.8% (1998)
 
Distribution of family income - Gini index 60.3 (1998)
 
Inflation rate consumer prices 5.3% (2004 est.)
 
Labor force 1.91 million (2004 est.)
 
Labor force by occupation agriculture 42%, industry 15%, services 43% (1999 est.)
 
Unemployment rate 22% plus considerable underemployment (2004 est.)
 
Budget
revenues: $672.5 million
expenditures: $954.9 million, including capital expenditures of $NA (2004 est.)
 
Public debt 125.3% of GDP (2004 est.)
 
Agriculture products coffee, bananas, sugarcane, cotton, rice, corn, tobacco, sesame, soya, beans; beef, veal, pork, poultry, dairy products
 
Industries food processing, chemicals, machinery and metal products, textiles, clothing, petroleum refining and distribution, beverages, footwear, wood
 
Industrial production growth rate 4.4% (2000 est.)
 
Electricity production 2.549 billion kWh (2001)
 
Electricity production by source
fossil fuel: 83.9%
hydro: 7.7%
other: 8.4% (2001)
nuclear: 0%
 
Electricity consumption 2.388 billion kWh (2001)
 
Electricity exports 0 kWh (2001)
 
Electricity imports 17 million kWh (2001)
 
Oil production 0 bbl/day (2001 est.)
 
Oil consumption 24,500 bbl/day (2001 est.)
 
Oil exports NA (2001)
 
Oil imports NA (2001)
 
Oil proved reserves  
Natural gas production  
Natural gas consumption  
Natural gas exports  
Natural gas imports  
Natural gas proved reserves  
Current account balance $-859 million (2004 est.)
 
Exports $632 million f.o.b. (2004 est.)
 
Exports commodities coffee, shrimp and lobster, cotton, tobacco, bananas, beef, sugar, gold
 
Exports partners US 35.9%, El Salvador 17.2%, Costa Rica 8.1%, Honduras 7.3%, Mexico 4.6%, Guatemala 4.3% (2003)
 
Imports $1.658 billion f.o.b. (2003 est.)
 
Imports commodities machinery and equipment, raw materials, petroleum products, consumer goods
 
Imports partners US 24.9%, Venezuela 9.7%, Costa Rica 9%, Mexico 8.4%, Guatemala 7.3%, El Salvador 4.9%, Japan 4.3% (2003)
 
Reserves of foreign exchange gold $502 million (2004 est.)
 
Debt external $5.833 billion (2004 est.)
 
Economic aid recipient Substantial foreign support (2001)
 
Currency gold cordoba (NIO)
 
Currency code NIO
 
Exchange rates gold cordobas per US dollar - 14.2513 (2003), 14.2513 (2002), 13.3719 (2001), 12.6844 (2000), 11.8092 (1999)
 
Fiscal year calendar year

 

 

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This information was reproduced in part from the CIA World Fact book.

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