Nicaragua



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Nicaragua Economy 2004


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 (2003 est.)
GDP - real growth rate: 2.3% (2003 est.)
GDP - per capita: purchasing power parity - $2,300 (2003 est.)
GDP - composition by sector: agriculture: 28.9% industry: 25.4% services: 45.7% (2003 est.)
Investment (gross fixed): 28.1% of GDP (2003)
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% (2003 est.)
Labor force: 1.91 million (2003)
Labor force - by occupation: agriculture 42%, industry 15%, services 43% (1999 est.)
Unemployment rate: 22% plus considerable underemployment (2003 est.)
Budget: revenues: $672.5 million expenditures: $954.9 million, including capital expenditures of $NA (2003 est.)
Public debt: 125.3% of GDP (2003)
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 - 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)
Current account balance: $-859 million (2003)
Exports: $632 million f.o.b. (2003 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 (2003)
Debt - external: $5.833 billion (2003 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

NOTE: The economy information regarding Nicaragua on this page is re-published from the 2004 World Fact Book of the United States Central Intelligence Agency. No claims are made regarding the accuracy of Nicaragua Economy 2004 information contained here. All suggestions for corrections of any errors about Nicaragua Economy 2004 should be addressed to the CIA.