Nicaragua Economy 1997

Economy - overview The Nicaraguan economy, devastated during the 1980s by economic mismanagementand civil war, is beginning to rebound. Since March 1991, when President CHAMORROlaunched an ambitious economic stabilization program, Nicaragua has reducedinflation and obtained substantial economic aid from abroad. Annual inflationfell from more than 750% in 1991 to less than 5% in 1992. After rising againto an estimated 20% in 1993, the annual inflation rate dropped to roughly11% in 1994-96. Economic growth rose sharply in 1995-96, thanks to surgesin most export categories. The government's efforts to liberalize trade includea December 1995 decision to stop requiring exporters to bring their foreignexchange earnings into Nicaragua. On the debt front, the Nicaraguan Governmentlaunched a successful debt buyback program in 1995, purchasing 73% of its$1.373 billion commercial debt inherited from previous governments. Progressalso occurred on reducing bilateral debt in 1996 as Nicaragua reached an agreementwith Russia, reducing Nicaragua's debt by $3.3 billion. Debt reduction agreementswith Paris Club creditors and rescheduling with Latin American creditors alsotook place. Unemployment remains a pressing problem, however, with roughlyhalf the country's work force unemployed or underemployed.

GDP purchasing power parity - $7.7 billion (1996 est.)

GDP - real growth rate 5.5% (1996 est.)

GDP - per capita purchasing power parity - $1,800 (1996 est.)

GDP - composition by sector
agriculture: 34%
industry: 21%
services: 45% (1995)

Inflation rate - consumer price index 11% (1996)

Labor force
total : 1.086 million
by occupation: services 43%, agriculture 44%, industry 13% (1986)

Unemployment rate 16%; underemployment 36% (1996 est.)

Budget
revenues: $389 million
expenditures: $551 million, including capital expenditures of $NA (1996 est.)

Industries food processing, chemicals, metal products, textiles, clothing, petroleumrefining and distribution, beverages, footwear

Industrial production growth rate 1.4% (1994 est.)

Electricity - capacity 417,700 kW (1995)

Electricity - production 1.713 billion kWh (1995)

Electricity - consumption per capita 279 kWh (1995 est.)

Agriculture - products coffee, bananas, sugarcane, cotton, rice, corn, cassava (tapioca), citrus,beans; beef, veal, pork, poultry, dairy products

Exports
total value: $607 million (f.o.b., 1996)
commodities: meat, coffee, cotton, sugar, seafood, gold, bananas
partners: US, Central America, Canada, Germany

Imports
total value : $1.188 billion (c.i.f., 1996)
commodities: consumer goods, machinery and equipment, petroleum products
partners: Central America, US, Venezuela, Japan

Debt - external $6 billion (1996 est.)

Economic aid
recipient: ODA, $NA

Currency 1 gold cordoba (C$) = 100 centavos

Exchange rates gold cordobas (C$) per US$1 - 8.63 (September 1996), 7.55 (1995), 6.72(1994), 5.62 (1993), 5.00 (1992)

Fiscal year calendar year

NOTE: The information regarding Nicaragua on this page is re-published from the 1997 World Fact Book of the United States Central Intelligence Agency. No claims are made regarding the accuracy of Nicaragua Economy 1997 information contained here. All suggestions for corrections of any errors about Nicaragua Economy 1997 should be addressed to the CIA.