Economy of Nicaragua
Nicaragua is considered to be a developing nation. The developmental stage of a nation is determined by a number of factors including, but not limited to, economic prosperity, life expectancy, income equality, and quality of life. As a developing nation, Nicaragua may not be able to offer consistent social services to its citizens. These social services may include things like public education, reliable healthcare, and law enforcement. Citizens of developing nations may have lower life expectancies than citizens of developed nations. Each year, Nicaragua exports around $2.4 billion and imports roughly $5.65 billion. 4.4% of population in the country are unemployed. The total number of unemployed people in Nicaragua is 276,529. In Nicaragua, 29.6% of the population lives below the poverty line. The percentage of citizens living below the poverty line in Nicaragua is fairly high, but is not reason for complete concern with regard to investments. Potential financial backers should look at other economic markers, including GDP, urbanization rate, and strength of currency, before making any decisions regarding investments. Government expenditure on education is 3.9% of GDP. The Gini Index of the country is 40.5. Nicaragua is experiencing poor equality. The gap between the richest and poorest citizens in this country is quite noticeable. Nicaragua has a Human Development Index (HDI) of 0.614. Nicaragua has an upper medium HDI score. This indicates that the majority of citizens will be able to attain a desirable life, though some citizens will not be able to achieve high living standards. The Global Peace Index (GPI) for Nicaragua is 1.947. Due to strong law enforcement presence and high social responsibility, Nicaragua is very safe by international standards. The strength of legal rights index for Nicaragua is 1. Overall, it is considered to be rather weak - bankrupcy and collateral laws are unable to protect the rights of borrowers and lenders in case of credit-related complications; credit information, if any at all, is scarce and hardly accessible.
The currency of Nicaragua is Nicaraguan cordoba. The plural form of the word Nicaraguan cordoba is cordobas. The symbol used for this currency is C$, and it is abbreviated as NIO. The Nicaraguan cordoba is divided into Centavo; there are 100 in one cordoba.
The depth of credit information index for Nicaragua is 8, which means that information is mostly sufficient and quite detailed; accessibility is not a problem. According to the Moody's credit-rating agency, Nicaragua has a credit rating score of B3, and the prospects of this rating are stable.
In Nicaragua, the institution that manages the state's currency, money supply, and interest rates is called Central Bank of Nicaragua. Locally, the central bank of Nicaragua is called Banco Central de Nicaragua. The average deposit interest rate offered by local banks in Nicaragua is 1%.
Nicaragua has a government debt of 46.6% of the country's Gross Domestic Product (GDP), as assessed in 2012.
The corporate tax in Nicaragua is set at 30%. VAT in Nicaragua is 15%.
The total Gross Domestic Product (GDP) assessed as Purchasing Power Parity (PPP) in Nicaragua is $29686 billion. The Gross Domestic Product (GDP) assessed as Purchasing Power Parity (PPP) per capita in Nicaragua was last recorded at $5 million. PPP in Nicaragua is considered to be below average when compared to other countries. Below average PPP indicates that citizens in this country find it difficult to purchase local goods. Local goods can include food, shelter, clothing, health care, personal care, essential furnishings, transportation and communication, laundry, and various types of insurance. Countries with below average PPP are dangerous locations for investments. The total Gross Domestic Product (GDP) in Nicaragua is 11,256 billion. Based on this statistic, Nicaragua is considered to have a medium economy. Countries with medium economies support an average number of industries and opportunities for investment. It should not be too difficult to find worthwhile investment opportunities in medium economies. The Gross Domestic Product (GDP) per capita in Nicaragua was last recorded at $2 million. The average citizen in Nicaragua has very low wealth. Countries with very low wealth per capita often have lower life expectancies and dramatically lower quality of living among citizens. It can be very difficult to find highly skilled workers in countries with very low wealth, as it is difficult for citizens to obtain the requisite education needed for specialized industries. However, labor can be found for very low rates when compared with countries with higher wealth per capita. GDP Annual Growth Rate in Nicaragua averaged 4% in 2014. According to this percentage, Nicaragua is currently experiencing significant growth. Countries that are experiencing significant growth offer the best chance for a substantial return on investment, as GDP growth rate is the most important indicator of economic health. As GDP grows, business, jobs, and personal income grow as well. To read more about financial information click on finances of Nicaragua.
Major industries in the country are food processing, chemicals, machinery and metal products, knit and woven apparel, petroleum refining and distribution, beverages, footwear, wood, electric wire harness manufacturing, mining. The total labor force of Nicaragua is 2,940,030 people, wherein 4.4% of population in the country are unemployed. The total number of unemployed people in Nicaragua is 276,529. The Industrial Production growth rate of Nicaragua is 9%.To read more about industrial information within Nicaragua click on industry of Nicaragua.
There are 17810 km2 of arable land in Nicaragua, and it comprises 14% of the country's total territory. There are 19999 km2 of cultivated land in Nicaragua. The country's major agricultural crops and products are coffee, bananas, sugarcane, cotton, rice, corn, tobacco, sesame, soya, beans, beef, veal, pork, poultry, dairy products, shrimp, lobsters.To read more about agriculture click on agriculture of Nicaragua.