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    Nicaragua Economy 1998

      Economy - overview The Nicaraguan economy, devastated during the 1980s by economic mismanagement and civil war, is beginning to rebound. In 1991 President CHAMORRO launched an ambitious economic stabilization program that reduced inflation and obtained substantial economic aid from abroad. Economic growth rose sharply in 1995-97, due to surges in exports and efforts to enhance trade liberalization. The program, however, hit some snags, and a 1994-97 IMF Enhanced Structural Adjustment Facility (ESAF) signed by the CHAMORRO administration with the Fund lapsed in September 1996 due to non-compliance. In 1997, however, the IMF resumed negotiations for an ESAF with the ALEMAN administration, and agreed to an ESAF in 1998. IMF approval of the ESAF cleared the way for debt relief by the Paris Club later that year and has opened the way for debt relief under the Highly Indebted Poor Countries Initiative. Implementation of a 1997 property accord - designed to resolve conflict over properties confiscated by the Sandinistas in the 1980s - should also help inspire international investor confidence. Strong growth is forecast for 1998, with implementation of a 1997 free trade agreement with Mexico expected to boost agricultural exports, although the industrial sector may come under pressure from increased Mexican competition.

      GDP purchasing power parity - $9.3 billion (1997 est.)

      GDP - real growth rate 6% (1997 est.)

      GDP - per capita purchasing power parity - $2,100 (1997 est.)

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

      Inflation rate - consumer price index 11.6% (1996)

      Labor force
      total: 1.5 million
      by occupation: services 54%, agriculture 31%, industry 15% (1995 est.)

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

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

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

      Industrial production growth rate 1.4% (1994 est.)

      Electricity - capacity 457,000 kW (1995)

      Electricity - production 1.76 billion kWh (1995)

      Electricity - consumption per capita 416 kWh (1995)

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

      total value: $635 million (f.o.b., 1996)
      commodities: coffee, seafood, meat, sugar, gold, bananas
      partners: US, Central America, Germany, Canada

      total value: $1.1 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 - 9.76 (October 1997), 8.44 (1996), 7.55 (1995), 6.72 (1994), 5.62 (1993)

      Fiscal year calendar year

      NOTE: The information regarding Nicaragua on this page is re-published from the 1998 World Fact Book of the United States Central Intelligence Agency. No claims are made regarding the accuracy of Nicaragua Economy 1998 information contained here. All suggestions for corrections of any errors about Nicaragua Economy 1998 should be addressed to the CIA.

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    Revised 21-Dec-01
    Copyright © 2001 Photius Coutsoukis (all rights reserved)