Economy of Nicaragua
Encyclopedia
Nicaragua
's economy is focused primarily on the agricultural sector. However, the country is the least developed country in Central America
and the second poorest in the Americas
by nominal GDP. GDP fell by almost 3% in 2009, due to decreased export demand in the US and Central American markets, lower commodity prices for key agricultural exports, and low remittance growth. Remittances
are a major source of income, they are equivalent to 15% of the country's GDP, close to one million Nicaraguans had emigrated. The US-Central America Free Trade Agreement has been in effect since April 2006 and has expanded export opportunities for many agricultural and manufactured goods. Textiles and apparel account for nearly 60% of Nicaragua's exports, but increases in the minimum wage during the Ortega administration will likely erode its comparative advantage in this industry. Nicaragua relies on international economic assistance to meet internal- and external-debt financing obligations, however, foreign donors have curtailed this funding in response to November 2008 electoral fraud. In early 2004, Nicaragua secured some $4.5 billion in foreign debt reduction under the Heavily Indebted Poor Countries
initiative, and in October 2007, the IMF approved a new poverty reduction and growth facility program.
. At the same time, the US staged an economic blockade
from 1985 onward.
Following the end of the war and the defeat of the Sandinistas in the 1990 general election, Nicaragua began free market
reforms, privatizing
more than 350 state companies. Since then, inflation has been reduced from 33,603% to 8%, and the government's foreign debt has been cut in half. The economy began expanding in 1991 and grew 2.5% in 2001. In 2001, the global recession
, combined with a series of bank failures, low coffee prices, and a drought
, caused the economy to retract.
Unemployment
is officially 3.8% (2006 est.), and another 46.5% (2006 est.) are underemployed. Nicaragua suffers from persistent trade and budget deficits and a high debt-service burden, leaving it highly dependent on foreign assistance — as much as 25% of GDP in 2001.
One of the key engines of economic growth has been production for export. Exports were 640 million in 2001. Although traditional products such as coffee, meat, and sugar continued to lead the list of Nicaraguan exports, the fastest growth is now in nontraditional exports: maquila goods (apparel); gold; seafood; and new agricultural products such as peanuts, sesame, melons, and onions. In 2007, exports topped 1 billion dollars for the first time in Nicaraguan history. Nicaragua also depends heavily on remittances from Nicaraguans living abroad.
Nicaragua is primarily an agricultural country, but construction, mining, fisheries, and general commerce also have been expanding during the last few years. Foreign private capital inflows topped $300 million in 1999 but, due to economic and political uncertainty, fell to less than $100 million in 2001. In the last 12 years, tourism
has grown 394%, the rapid growth has led it to become Nicaragua's second largest source of foreign capital. Less than three years ago, the nation’s tourism budget was U.S. $400,000; today, it is over $2 million. Nicaragua's economy has also produced a construction
boom, the majority of which is in and around Managua
.
Nicaragua faces a number of challenges in stimulating rapid economic growth. An International Monetary Fund
(IMF) program is currently being followed, with the aim of attracting investment, creating jobs, and reducing poverty
by opening the economy to foreign trade. This process was boosted in late 2000 when Nicaragua reached the decision point under the Heavily Indebted Poor Countries
(HIPC) debt relief initiative. However, HIPC benefits were delayed because Nicaragua subsequently fell "off track" from its IMF program. The country also has been grappling with a string of bank failures that began in August 2000. Moreover, Nicaragua continues to lose international reserves due to its growing fiscal deficits.
The country is still a recovering economy and it continues to implement further reforms, on which aid from the IMF
is conditional. In 2005, finance ministers of the leading eight industrialized nations (G8
) agreed to forgive some of Nicaragua's foreign debt, as part of the HIPC
program. According to the World Bank Nicaragua's GDP
was around $4.9 US billion dollars. Recently, in March 2007, Poland
and Nicaragua signed an agreement to write off $30.6 million which was borrowed by the Nicaraguan government in the 1980s.
The U.S. is the country's largest trading partner, providing 25% of Nicaragua's import
s and receiving about 60% of its export
s. About 25 wholly or partly owned subsidiaries of U.S. companies operate in Nicaragua. The largest of those investments are in the energy, communications, manufacturing, fisheries, and shrimp farming sectors. Good opportunities exist for further investments in those same sectors, as well as in tourism, mining, franchising, and the distribution of imported consumer, manufacturing, and agricultural goods. There also are copper
mines in northeastern Nicaragua.
Gross Domestic Product (GDP) in purchasing power parity
(PPP) in 2008 was estimated at $16.83 billion USD, and GDP per capita in PPP at $2,600 USD, making Nicaragua the second poorest country in the Western Hemisphere
. The service sector is the largest component of GDP at 56.9%, followed by the industrial sector at 26.1%(2008). Agriculture represents 17% of GDP and it's the largest percentage in a Central American country
. Nicaraguan labor force is estimated at 2.261 million of which 29% is occupied in agriculture, 19% in the industry sector and 52% in the service sector (2008).
}
}}
|-
! style="background:#e9e9e9;" | Product
! style="background:#e9e9e9;" | World Rank1
|-
| style="background:#f0f0f0;" |Coffee, Green
| style="background:#f0f0f0;" align=right| 4
|-
|Beans, Dry
|align=right|17
|-
|Groundnuts in Shell
|align=right|30
|-
| style="background:#f0f0f0;" |Indigenous Horse Meat
| style="background:#f0f0f0;" align=right|30
|-
|Plantains
| align=right|32
|-
|style="background:#f0f0f0;"|Sesame Seed
|style="background:#f0f0f0;" align=right|32
|-
|Sugar Cane
| align=right|32
|-
|style="background:#f0f0f0;"|Pineapples
|style="background:#f0f0f0;" align=right|33
|-
|Castor Beans
| align=right|37
|-
|style="background:#f0f0f0;"|Cocoa Beans
|style="background:#f0f0f0;" align=right|41
|-
|Cassava
| align=right|48
|-
|style="background:#f0f0f0;"|Oranges
|style="background:#f0f0f0;" align=right|49
|-
|Soybeans
| align=right|50
|-
|colspan=3 style="background:#e9e9e9;" align=center|1Source: FAO
(2005) Major Food and Agricultural Commodities and Producers
|-
|}
Nicaragua
Nicaragua is the largest country in the Central American American isthmus, bordered by Honduras to the north and Costa Rica to the south. The country is situated between 11 and 14 degrees north of the Equator in the Northern Hemisphere, which places it entirely within the tropics. The Pacific Ocean...
's economy is focused primarily on the agricultural sector. However, the country is the least developed country in Central America
Central America
Central America is the central geographic region of the Americas. It is the southernmost, isthmian portion of the North American continent, which connects with South America on the southeast. When considered part of the unified continental model, it is considered a subcontinent...
and the second poorest in the Americas
Americas
The Americas, or America , are lands in the Western hemisphere, also known as the New World. In English, the plural form the Americas is often used to refer to the landmasses of North America and South America with their associated islands and regions, while the singular form America is primarily...
by nominal GDP. GDP fell by almost 3% in 2009, due to decreased export demand in the US and Central American markets, lower commodity prices for key agricultural exports, and low remittance growth. Remittances
Remittances
A remittance is a transfer of money by a foreign worker to his or her home country. Note that in 19th century usage a remittance man was someone exiled overseas and sent an allowance on condition that he not return home....
are a major source of income, they are equivalent to 15% of the country's GDP, close to one million Nicaraguans had emigrated. The US-Central America Free Trade Agreement has been in effect since April 2006 and has expanded export opportunities for many agricultural and manufactured goods. Textiles and apparel account for nearly 60% of Nicaragua's exports, but increases in the minimum wage during the Ortega administration will likely erode its comparative advantage in this industry. Nicaragua relies on international economic assistance to meet internal- and external-debt financing obligations, however, foreign donors have curtailed this funding in response to November 2008 electoral fraud. In early 2004, Nicaragua secured some $4.5 billion in foreign debt reduction under the Heavily Indebted Poor Countries
Heavily Indebted Poor Countries
Heavily Indebted Poor Countries is a group of 40 developing countries with high levels of poverty and debt overhang which are eligible for special assistance from the International Monetary Fund and the World Bank.- History and structure :...
initiative, and in October 2007, the IMF approved a new poverty reduction and growth facility program.
Economy
Nicaragua's economy was devastated in the 1980s by the Contra War, which saw the destruction of much of the country's infrastructureInfrastructure
Infrastructure is basic physical and organizational structures needed for the operation of a society or enterprise, or the services and facilities necessary for an economy to function...
. At the same time, the US staged an economic blockade
Blockade
A blockade is an effort to cut off food, supplies, war material or communications from a particular area by force, either in part or totally. A blockade should not be confused with an embargo or sanctions, which are legal barriers to trade, and is distinct from a siege in that a blockade is usually...
from 1985 onward.
Following the end of the war and the defeat of the Sandinistas in the 1990 general election, Nicaragua began free market
Free market
A free market is a competitive market where prices are determined by supply and demand. However, the term is also commonly used for markets in which economic intervention and regulation by the state is limited to tax collection, and enforcement of private ownership and contracts...
reforms, privatizing
Privatization
Privatization is the incidence or process of transferring ownership of a business, enterprise, agency or public service from the public sector to the private sector or to private non-profit organizations...
more than 350 state companies. Since then, inflation has been reduced from 33,603% to 8%, and the government's foreign debt has been cut in half. The economy began expanding in 1991 and grew 2.5% in 2001. In 2001, the global recession
Global recession
A global recession is a period of global economic slowdown. The International Monetary Fund takes many factors into account when defining a global recession, but it states that global economic growth of 3 percent or less is "equivalent to a global recession".By this measure, four periods since...
, combined with a series of bank failures, low coffee prices, and a drought
Drought
A drought is an extended period of months or years when a region notes a deficiency in its water supply. Generally, this occurs when a region receives consistently below average precipitation. It can have a substantial impact on the ecosystem and agriculture of the affected region...
, caused the economy to retract.
Unemployment
Unemployment
Unemployment , as defined by the International Labour Organization, occurs when people are without jobs and they have actively sought work within the past four weeks...
is officially 3.8% (2006 est.), and another 46.5% (2006 est.) are underemployed. Nicaragua suffers from persistent trade and budget deficits and a high debt-service burden, leaving it highly dependent on foreign assistance — as much as 25% of GDP in 2001.
One of the key engines of economic growth has been production for export. Exports were 640 million in 2001. Although traditional products such as coffee, meat, and sugar continued to lead the list of Nicaraguan exports, the fastest growth is now in nontraditional exports: maquila goods (apparel); gold; seafood; and new agricultural products such as peanuts, sesame, melons, and onions. In 2007, exports topped 1 billion dollars for the first time in Nicaraguan history. Nicaragua also depends heavily on remittances from Nicaraguans living abroad.
Nicaragua is primarily an agricultural country, but construction, mining, fisheries, and general commerce also have been expanding during the last few years. Foreign private capital inflows topped $300 million in 1999 but, due to economic and political uncertainty, fell to less than $100 million in 2001. In the last 12 years, tourism
Tourism
Tourism is travel for recreational, leisure or business purposes. The World Tourism Organization defines tourists as people "traveling to and staying in places outside their usual environment for not more than one consecutive year for leisure, business and other purposes".Tourism has become a...
has grown 394%, the rapid growth has led it to become Nicaragua's second largest source of foreign capital. Less than three years ago, the nation’s tourism budget was U.S. $400,000; today, it is over $2 million. Nicaragua's economy has also produced a construction
Construction
In the fields of architecture and civil engineering, construction is a process that consists of the building or assembling of infrastructure. Far from being a single activity, large scale construction is a feat of human multitasking...
boom, the majority of which is in and around Managua
Managua
Managua is the capital city of Nicaragua as well as the department and municipality by the same name. It is the largest city in Nicaragua in terms of population and geographic size. Located on the southwestern shore of Lake Xolotlán or Lake Managua, the city was declared the national capital in...
.
Nicaragua faces a number of challenges in stimulating rapid economic growth. An International Monetary Fund
International Monetary Fund
The International Monetary Fund is an organization of 187 countries, working to foster global monetary cooperation, secure financial stability, facilitate international trade, promote high employment and sustainable economic growth, and reduce poverty around the world...
(IMF) program is currently being followed, with the aim of attracting investment, creating jobs, and reducing poverty
Poverty
Poverty is the lack of a certain amount of material possessions or money. Absolute poverty or destitution is inability to afford basic human needs, which commonly includes clean and fresh water, nutrition, health care, education, clothing and shelter. About 1.7 billion people are estimated to live...
by opening the economy to foreign trade. This process was boosted in late 2000 when Nicaragua reached the decision point under the Heavily Indebted Poor Countries
Heavily Indebted Poor Countries
Heavily Indebted Poor Countries is a group of 40 developing countries with high levels of poverty and debt overhang which are eligible for special assistance from the International Monetary Fund and the World Bank.- History and structure :...
(HIPC) debt relief initiative. However, HIPC benefits were delayed because Nicaragua subsequently fell "off track" from its IMF program. The country also has been grappling with a string of bank failures that began in August 2000. Moreover, Nicaragua continues to lose international reserves due to its growing fiscal deficits.
The country is still a recovering economy and it continues to implement further reforms, on which aid from the IMF
International Monetary Fund
The International Monetary Fund is an organization of 187 countries, working to foster global monetary cooperation, secure financial stability, facilitate international trade, promote high employment and sustainable economic growth, and reduce poverty around the world...
is conditional. In 2005, finance ministers of the leading eight industrialized nations (G8
G8
The Group of Eight is a forum, created by France in 1975, for the governments of seven major economies: Canada, France, Germany, Italy, Japan, the United Kingdom, and the United States. In 1997, the group added Russia, thus becoming the G8...
) agreed to forgive some of Nicaragua's foreign debt, as part of the HIPC
Heavily Indebted Poor Countries
Heavily Indebted Poor Countries is a group of 40 developing countries with high levels of poverty and debt overhang which are eligible for special assistance from the International Monetary Fund and the World Bank.- History and structure :...
program. According to the World Bank Nicaragua's GDP
Gross domestic product
Gross domestic product refers to the market value of all final goods and services produced within a country in a given period. GDP per capita is often considered an indicator of a country's standard of living....
was around $4.9 US billion dollars. Recently, in March 2007, Poland
Poland
Poland , officially the Republic of Poland , is a country in Central Europe bordered by Germany to the west; the Czech Republic and Slovakia to the south; Ukraine, Belarus and Lithuania to the east; and the Baltic Sea and Kaliningrad Oblast, a Russian exclave, to the north...
and Nicaragua signed an agreement to write off $30.6 million which was borrowed by the Nicaraguan government in the 1980s.
The U.S. is the country's largest trading partner, providing 25% of Nicaragua's import
Import
The term import is derived from the conceptual meaning as to bring in the goods and services into the port of a country. The buyer of such goods and services is referred to an "importer" who is based in the country of import whereas the overseas based seller is referred to as an "exporter". Thus...
s and receiving about 60% of its export
Export
The term export is derived from the conceptual meaning as to ship the goods and services out of the port of a country. The seller of such goods and services is referred to as an "exporter" who is based in the country of export whereas the overseas based buyer is referred to as an "importer"...
s. About 25 wholly or partly owned subsidiaries of U.S. companies operate in Nicaragua. The largest of those investments are in the energy, communications, manufacturing, fisheries, and shrimp farming sectors. Good opportunities exist for further investments in those same sectors, as well as in tourism, mining, franchising, and the distribution of imported consumer, manufacturing, and agricultural goods. There also are copper
Copper
Copper is a chemical element with the symbol Cu and atomic number 29. It is a ductile metal with very high thermal and electrical conductivity. Pure copper is soft and malleable; an exposed surface has a reddish-orange tarnish...
mines in northeastern Nicaragua.
Gross Domestic Product (GDP) in purchasing power parity
Purchasing power parity
In economics, purchasing power parity is a condition between countries where an amount of money has the same purchasing power in different countries. The prices of the goods between the countries would only reflect the exchange rates...
(PPP) in 2008 was estimated at $16.83 billion USD, and GDP per capita in PPP at $2,600 USD, making Nicaragua the second poorest country in the Western Hemisphere
Western Hemisphere
The Western Hemisphere or western hemisphere is mainly used as a geographical term for the half of the Earth that lies west of the Prime Meridian and east of the Antimeridian , the other half being called the Eastern Hemisphere.In this sense, the western hemisphere consists of the western portions...
. The service sector is the largest component of GDP at 56.9%, followed by the industrial sector at 26.1%(2008). Agriculture represents 17% of GDP and it's the largest percentage in a Central American country
Central America
Central America is the central geographic region of the Americas. It is the southernmost, isthmian portion of the North American continent, which connects with South America on the southeast. When considered part of the unified continental model, it is considered a subcontinent...
. Nicaraguan labor force is estimated at 2.261 million of which 29% is occupied in agriculture, 19% in the industry sector and 52% in the service sector (2008).
Agriculture and food production
| Food and agriculture |
|---|
}}
|-
! style="background:#e9e9e9;" | Product
! style="background:#e9e9e9;" | World Rank1
|-
| style="background:#f0f0f0;" |Coffee, Green
| style="background:#f0f0f0;" align=right| 4
|-
|Beans, Dry
|align=right|17
|-
|Groundnuts in Shell
|align=right|30
|-
| style="background:#f0f0f0;" |Indigenous Horse Meat
| style="background:#f0f0f0;" align=right|30
|-
|Plantains
| align=right|32
|-
|style="background:#f0f0f0;"|Sesame Seed
|style="background:#f0f0f0;" align=right|32
|-
|Sugar Cane
| align=right|32
|-
|style="background:#f0f0f0;"|Pineapples
|style="background:#f0f0f0;" align=right|33
|-
|Castor Beans
| align=right|37
|-
|style="background:#f0f0f0;"|Cocoa Beans
|style="background:#f0f0f0;" align=right|41
|-
|Cassava
| align=right|48
|-
|style="background:#f0f0f0;"|Oranges
|style="background:#f0f0f0;" align=right|49
|-
|Soybeans
| align=right|50
|-
|colspan=3 style="background:#e9e9e9;" align=center|1Source: FAO
Fão
Fão is a town in Esposende Municipality in Portugal....
(2005) Major Food and Agricultural Commodities and Producers
|-
|}
Coffee
Coffee
Coffee is a brewed beverage with a dark,init brooo acidic flavor prepared from the roasted seeds of the coffee plant, colloquially called coffee beans. The beans are found in coffee cherries, which grow on trees cultivated in over 70 countries, primarily in equatorial Latin America, Southeast Asia,...
became Nicaragua's principal crop in the 1870s, a position it still held in 1992 despite the growing importance of other crops. Cotton
Cotton
Cotton is a soft, fluffy staple fiber that grows in a boll, or protective capsule, around the seeds of cotton plants of the genus Gossypium. The fiber is almost pure cellulose. The botanical purpose of cotton fiber is to aid in seed dispersal....
gained importance in the late 1940s, and in 1992 was the second biggest export
Export
The term export is derived from the conceptual meaning as to ship the goods and services out of the port of a country. The seller of such goods and services is referred to as an "exporter" who is based in the country of export whereas the overseas based buyer is referred to as an "importer"...
earner. In the early 20th century, Nicaraguan governments were reluctant to give concessions to the large United States banana companies, and banana
Banana
Banana is the common name for herbaceous plants of the genus Musa and for the fruit they produce. Bananas come in a variety of sizes and colors when ripe, including yellow, purple, and red....
s never attained the level of prominence in Nicaragua that they reached in Nicaragua's Central American neighbors; bananas were grown in the country, however, and were generally the third largest export earner in the post-World War II
World War II
World War II, or the Second World War , was a global conflict lasting from 1939 to 1945, involving most of the world's nations—including all of the great powers—eventually forming two opposing military alliances: the Allies and the Axis...
period. Beef
Beef
Beef is the culinary name for meat from bovines, especially domestic cattle. Beef can be harvested from cows, bulls, heifers or steers. It is one of the principal meats used in the cuisine of the Middle East , Australia, Argentina, Brazil, Europe and the United States, and is also important in...
and animal byproducts , the most important agricultural export for the three centuries before the coffee boom of the late 19th century, were still important commodities in 1992.
From the end of World War II to the early 1960s, the growth and diversification
Agricultural diversification
In the agricultural context, diversification can be regarded as the re-allocation of some of a farm's productive resources, such as land, capital, farm equipment and paid labour, into new activities...
of the agricultural sector drove the nation's economic expansion
Economic expansion
An economic expansion is an increase in the level of economic activity, and of the goods and services available in the market place. It is a period of economic growth as measured by a rise in real GDP.The explanation of such fluctuations in aggregate economic activity is one of the primary...
. From the early 1960s until the increased fighting in 1977 caused by the Sandinista revolution, agriculture remained a robust and significant part of the economy
Economy
An economy consists of the economic system of a country or other area; the labor, capital and land resources; and the manufacturing, trade, distribution, and consumption of goods and services of that area...
, although its growth slowed somewhat in comparison with the previous postwar decades. Statistics for the next fifteen years, however, show stagnation and then a drop in agricultural production.
The agricultural sector declined precipitously in the 1980s. Until the late 1970s, Nicaragua's agricultural export system generated 40 percent of the country's GDP, 60 percent of national employment, and 80 percent of foreign exchange earnings. Throughout the 1980s, the Contras destroyed or disrupted coffee harvests as well as other key income-generating crops. Private industry stopped investing in agriculture because of uncertain returns. Land was taken out of production of export crops to expand plantings of basic grain. Many coffee plants succumbed to disease.
In 1989, the fifth successive year of decline, farm production declined by roughly 7 percent in comparison with the previous year. Production of basic grains fell as a result of Hurricane Joan in 1988 and a drought
Drought
A drought is an extended period of months or years when a region notes a deficiency in its water supply. Generally, this occurs when a region receives consistently below average precipitation. It can have a substantial impact on the ecosystem and agriculture of the affected region...
in 1989. By 1990 agricultural exports had declined to less than half the level of 1978. The only bright spot was the production of nontraditional export crops such as sesame
Sesame
Sesame is a flowering plant in the genus Sesamum. Numerous wild relatives occur in Africa and a smaller number in India. It is widely naturalized in tropical regions around the world and is cultivated for its edible seeds, which grow in pods....
, tobacco
Tobacco
Tobacco is an agricultural product processed from the leaves of plants in the genus Nicotiana. It can be consumed, used as a pesticide and, in the form of nicotine tartrate, used in some medicines...
, and African palm oil.
Services
The service sector was estimated to account for 56.8% of the country's GDP, and employs 52% of the active population. This section includes transportation, commerce, warehousing, restaurant and hotels, arts and entertainment, health, education, financial and banking services, telecommunications as well as public administration and defense.Tourism in Nicaragua
Tourism in Nicaragua
Tourism in Nicaragua has grown considerably recently, and it is now the second largest industry in the nation. Nicaraguan President Daniel Ortega has stated his intention to use tourism to combat poverty throughout the country. The growth in tourism has positively affected the agricultural,...
is one of the most important industries in the country. It is the second largest source of foreign exchange for the country and is predicted to become the first largest industry in 2007. The growth in tourism has positively affected the agricultural, commercial, finance, and construction industries as well.
Current Economic Outlook
Nicaragua has transformed itself into one of the safest and fastest-growing countries in Latin America. A stable, multi-party democracy, Nicaragua has ratified Free Trade Agreements with major markets such as the United States, the Dominican Republic (DR-CAFTA), Taiwan and Mexico, among others. As evidence of continuous efforts in improving the business climate, Nicaragua has been ranked favorably in a variety of independent evaluations. The 2011 Doing Business Report, published by The World Bank Group, a report that benchmarks various indicators of the investment climate in 183 nations, ranked Nicaragua as the top location in Central America in starting a business, investor protection, and closing a business. Additionally, the country improved in the following categories: ease of doing business, registering property, paying taxes, trading across borders and enforcing contracts.Other statistics
Household income or consumption by percentage share:lowest 10%: 1.6%; highest 10%: 39.8 (1993)
Industrial production growth rate:
2.4% (2005)
Electricity - production:
2.778 billion kWh (2006)
Electricity - production by source:
fossil fuel: 53.43%; hydro: 35.34%; nuclear: 0%; other: 11.23% (1998)
Electricity - consumption:
2.929 billion kWh (2006)
Electricity - exports:
69.34 million kWh (2006)
Electricity - imports:
0 kWh (2006)
Agriculture - products:
coffee
Coffee
Coffee is a brewed beverage with a dark,init brooo acidic flavor prepared from the roasted seeds of the coffee plant, colloquially called coffee beans. The beans are found in coffee cherries, which grow on trees cultivated in over 70 countries, primarily in equatorial Latin America, Southeast Asia,...
, banana
Banana
Banana is the common name for herbaceous plants of the genus Musa and for the fruit they produce. Bananas come in a variety of sizes and colors when ripe, including yellow, purple, and red....
s, sugarcane
Sugarcane
Sugarcane refers to any of six to 37 species of tall perennial grasses of the genus Saccharum . Native to the warm temperate to tropical regions of South Asia, they have stout, jointed, fibrous stalks that are rich in sugar, and measure two to six metres tall...
, cotton
Cotton
Cotton is a soft, fluffy staple fiber that grows in a boll, or protective capsule, around the seeds of cotton plants of the genus Gossypium. The fiber is almost pure cellulose. The botanical purpose of cotton fiber is to aid in seed dispersal....
, rice
Rice
Rice is the seed of the monocot plants Oryza sativa or Oryza glaberrima . As a cereal grain, it is the most important staple food for a large part of the world's human population, especially in East Asia, Southeast Asia, South Asia, the Middle East, and the West Indies...
, corn
Maize
Maize known in many English-speaking countries as corn or mielie/mealie, is a grain domesticated by indigenous peoples in Mesoamerica in prehistoric times. The leafy stalk produces ears which contain seeds called kernels. Though technically a grain, maize kernels are used in cooking as a vegetable...
, tobacco
Tobacco
Tobacco is an agricultural product processed from the leaves of plants in the genus Nicotiana. It can be consumed, used as a pesticide and, in the form of nicotine tartrate, used in some medicines...
, sesame
Sesame
Sesame is a flowering plant in the genus Sesamum. Numerous wild relatives occur in Africa and a smaller number in India. It is widely naturalized in tropical regions around the world and is cultivated for its edible seeds, which grow in pods....
, soya
Soya
Soya can mean:* Soya bean* Sōya District, Hokkaidō* Sōya Subprefecture, Hokkaidō* Soya3D, a high-level three-dimensional rendering engine for the Python programming language* Soya sauce, a fermented sauce made from soybeans, roasted grain, water and salt....
, bean
Bean
Bean is a common name for large plant seeds of several genera of the family Fabaceae used for human food or animal feed....
s; beef
Beef
Beef is the culinary name for meat from bovines, especially domestic cattle. Beef can be harvested from cows, bulls, heifers or steers. It is one of the principal meats used in the cuisine of the Middle East , Australia, Argentina, Brazil, Europe and the United States, and is also important in...
, veal
Veal
Veal is the meat of young cattle , as opposed to meat from older cattle. Though veal can be produced from a calf of either sex and any breed, most veal comes from male calves of dairy cattle breeds...
, pork
Pork
Pork is the culinary name for meat from the domestic pig , which is eaten in many countries. It is one of the most commonly consumed meats worldwide, with evidence of pig husbandry dating back to 5000 BC....
, poultry
Poultry
Poultry are domesticated birds kept by humans for the purpose of producing eggs, meat, and/or feathers. These most typically are members of the superorder Galloanserae , especially the order Galliformes and the family Anatidae , commonly known as "waterfowl"...
, dairy product
Dairy product
Dairy products are generally defined as foods produced from cow's or domestic buffalo's milk. They are usually high-energy-yielding food products. A production plant for such processing is called a dairy or a dairy factory. Raw milk for processing comes mainly from cows, and, to a lesser extent,...
s; shrimp
Shrimp
Shrimp are swimming, decapod crustaceans classified in the infraorder Caridea, found widely around the world in both fresh and salt water. Adult shrimp are filter feeding benthic animals living close to the bottom. They can live in schools and can swim rapidly backwards. Shrimp are an important...
, lobster
Lobster
Clawed lobsters comprise a family of large marine crustaceans. Highly prized as seafood, lobsters are economically important, and are often one of the most profitable commodities in coastal areas they populate.Though several groups of crustaceans are known as lobsters, the clawed lobsters are most...
s
Exports - commodities:
coffee
Coffee
Coffee is a brewed beverage with a dark,init brooo acidic flavor prepared from the roasted seeds of the coffee plant, colloquially called coffee beans. The beans are found in coffee cherries, which grow on trees cultivated in over 70 countries, primarily in equatorial Latin America, Southeast Asia,...
, beef
Beef
Beef is the culinary name for meat from bovines, especially domestic cattle. Beef can be harvested from cows, bulls, heifers or steers. It is one of the principal meats used in the cuisine of the Middle East , Australia, Argentina, Brazil, Europe and the United States, and is also important in...
, shrimp
Shrimp
Shrimp are swimming, decapod crustaceans classified in the infraorder Caridea, found widely around the world in both fresh and salt water. Adult shrimp are filter feeding benthic animals living close to the bottom. They can live in schools and can swim rapidly backwards. Shrimp are an important...
and lobster
Lobster
Clawed lobsters comprise a family of large marine crustaceans. Highly prized as seafood, lobsters are economically important, and are often one of the most profitable commodities in coastal areas they populate.Though several groups of crustaceans are known as lobsters, the clawed lobsters are most...
, cotton
Cotton
Cotton is a soft, fluffy staple fiber that grows in a boll, or protective capsule, around the seeds of cotton plants of the genus Gossypium. The fiber is almost pure cellulose. The botanical purpose of cotton fiber is to aid in seed dispersal....
, tobacco
Tobacco
Tobacco is an agricultural product processed from the leaves of plants in the genus Nicotiana. It can be consumed, used as a pesticide and, in the form of nicotine tartrate, used in some medicines...
, beef
Beef
Beef is the culinary name for meat from bovines, especially domestic cattle. Beef can be harvested from cows, bulls, heifers or steers. It is one of the principal meats used in the cuisine of the Middle East , Australia, Argentina, Brazil, Europe and the United States, and is also important in...
, peanuts
Peanuts
Peanuts is a syndicated daily and Sunday American comic strip written and illustrated by Charles M. Schulz, which ran from October 2, 1950, to February 13, 2000, continuing in reruns afterward...
, sugar
Sugar
Sugar is a class of edible crystalline carbohydrates, mainly sucrose, lactose, and fructose, characterized by a sweet flavor.Sucrose in its refined form primarily comes from sugar cane and sugar beet...
, banana
Banana
Banana is the common name for herbaceous plants of the genus Musa and for the fruit they produce. Bananas come in a variety of sizes and colors when ripe, including yellow, purple, and red....
s; gold
Gold
Gold is a chemical element with the symbol Au and an atomic number of 79. Gold is a dense, soft, shiny, malleable and ductile metal. Pure gold has a bright yellow color and luster traditionally considered attractive, which it maintains without oxidizing in air or water. Chemically, gold is a...
Imports - commodities:
consumer goods, machinery and equipment, raw materials, petroleum
Petroleum
Petroleum or crude oil is a naturally occurring, flammable liquid consisting of a complex mixture of hydrocarbons of various molecular weights and other liquid organic compounds, that are found in geologic formations beneath the Earth's surface. Petroleum is recovered mostly through oil drilling...
products
Currency:
1 gold Cordoba (C$) = 100 centavos
Exchange rates:
gold Cordoba (C$) per US$
Dollar
The dollar is the name of the official currency of many countries, including Australia, Belize, Canada, Ecuador, El Salvador, Hong Kong, New Zealand, Singapore, Taiwan, and the United States.-Etymology:...
1 - 17.582 (2006), 16.733 (2005), 15.937 (2004), 15.105 (2003), 14.251 (2002)
Price Inflation:
- 2007: 16.88%
- 2008: 13.37%
See also
- NicaraguaNicaraguaNicaragua is the largest country in the Central American American isthmus, bordered by Honduras to the north and Costa Rica to the south. The country is situated between 11 and 14 degrees north of the Equator in the Northern Hemisphere, which places it entirely within the tropics. The Pacific Ocean...
- Banking in NicaraguaBanking in NicaraguaBanking in Nicaragua, prior to 1978, consisted of the Central Bank of Nicaragua and several domestic- and foreign-owned commercial banks. One of the first acts of the Sandinista government in 1979 was to nationalize the country’s banking system in an attempt to promote community banking and support...
- Tourism in NicaraguaTourism in NicaraguaTourism in Nicaragua has grown considerably recently, and it is now the second largest industry in the nation. Nicaraguan President Daniel Ortega has stated his intention to use tourism to combat poverty throughout the country. The growth in tourism has positively affected the agricultural,...
- Agriculture in NicaraguaAgriculture in Nicaragua-History:Coffee became Nicaragua's principal crop in the 1870s, a position it still held in 1992 despite the growing importance of other crops. Cotton gained importance in the late 1940s, and in 1992 was the second biggest export earner...
- Economy of North AmericaEconomy of North AmericaThe economy of North America comprises more than 528 million people in its 23 sovereign states and 15 dependent territories...
External links
- U.S./Nicaraguan embassy economic reports
- Labor Conditions in the Nicaraguan Sugar Industry A 2005 study by PASE and the International Labor Rights FundInternational Labor Rights FundThe International Labor Rights Forum is a nonprofit advocacy organization headquartered in Washington, DC that describes itself as "an advocate for and with the working poor around the world". ILRF, formerly the International Labor Rights Education & Research Fund, was founded in 1986...
- cia.gov factbook on Nicaragua