Nicaragua Economy 2008

Economy - overview:
Nicaragua has widespread underemployment, one of the highest degrees of income inequality in the world, and the third lowest per capita income in the Western Hemisphere. While the country has progressed toward macroeconomic stability in the past few years, annual GDP growth has been far too low to meet the country's needs, forcing the country to rely on international economic assistance to meet fiscal and debt financing obligations. In early 2004, Nicaragua secured some $4.5 billion in foreign debt reduction under the Heavily Indebted Poor Countries (HIPC) initiative, and in October 2007, the IMF approved a new poverty reduction and growth facility (PRGF) program that should create fiscal space for social spending and investment. The continuity of a relationship with the IMF reinforces donor confidence, despite private sector concerns surrounding Ortega, which has dampened investment. The US-Central America Free Trade Agreement (CAFTA) has been in effect since April 2006 and has expanded export opportunities for many agricultural and manufactured goods. Energy shortages fueled by high oil prices, however, are a serious bottleneck to growth.

GDP (purchasing power parity):
$18.17 billion (2007 est.)

GDP (official exchange rate):
$5.134 billion (2007 est.)

GDP - real growth rate:
2.9% (2007 est.)

GDP - per capita (PPP):
$3,200 (2007 est.)

GDP - composition by sector:
agriculture: 17.1%
industry: 25.9%
services: 56.9% (2007 est.)

Labor force:
2.262 million (2007 est.)

Labor force - by occupation:
agriculture: 29%
industry: 19%
services: 52% (2006 est.)

Unemployment rate:
5.6% plus underemployment of 46.5% (2007 est.)

Population below poverty line:
48% (2005)

Household income or consumption by percentage share:
lowest 10%: 2.2%
highest 10%: 33.8% (2001)

Distribution of family income - Gini index:
43.1 (2001)

Inflation rate (consumer prices):
9.8% (2007 est.)

Investment (gross fixed):
28.8% of GDP (2007 est.)

Budget:
revenues: $1.027 billion
expenditures: $1.336 billion (2007 est.)

Public debt:
56.2% of GDP (2007 est.)

Agriculture - products:
coffee, bananas, sugarcane, cotton, rice, corn, tobacco, sesame, soya, beans; beef, veal, pork, poultry, dairy products; shrimp, lobsters

Industries:
food processing, chemicals, machinery and metal products, textiles, clothing, petroleum refining and distribution, beverages, footwear, wood

Industrial production growth rate:
3% (2007 est.)

Electricity - production:
2.778 billion kWh (2006)

Electricity - consumption:
2.929 billion kWh (2006)

Electricity - exports:
8 million kWh (2005)

Electricity - imports:
69.34 million kWh (2006)

Oil - production:
0 bbl/day (2005 est.)

Oil - consumption:
28,000 bbl/day (2005 est.)

Oil - exports:
1,397 bbl/day (2004)

Oil - imports:
15,560 bbl/day (2005 est.)

Oil - proved reserves:
0 bbl (1 January 2006 est.)

natural gas - production:
0 cu m (2005 est.)

natural gas - consumption:
0 cu m (2005 est.)

natural gas - exports:
0 cu m (2005 est.)

natural gas - imports:
0 cu m (2005)

natural gas - proved reserves:
0 cu m (1 January 2006 est.)

Current account balance:
-$754 million (2007 est.)

Exports:
$2.235 billion f.o.b.; note - includes free trade zones (2007 est.)

Exports - commodities:
coffee, beef, shrimp and lobster, tobacco, sugar, gold, peanuts

Exports - partners:
US 65.2%, El Salvador 6.9%, Honduras 3.8% (2006)

Imports:
$3.647 billion f.o.b. (2007 est.)

Imports - partners:
US 20.1%, Mexico 13.9%, Venezuela 9.4%, Costa Rica 6.9%, Guatemala 5.4%, China 4.3% (2006)

Economic aid - recipient:
$471 million (2006 est.)

Reserves of foreign exchange and gold:
$1.075 billion (31 December 2007 est.)

Debt - external:
$3.702 billion (31 December 2007 est.)

Market value of publicly traded shares:
$NA

Currency (code):
gold cordoba (NIO)

Exchange rates:
gold cordobas per US dollar - 18.457 (2007), 17.582 (2006), 16.733 (2005), 15.937 (2004), 15.105 (2003)