Economy — Nicaragua
GDP, employment, industries, public finance, and currency.
Profile updated 2026-06-02
⚡ Economy at a glance
GDP, employment, industries, public finance, and currency. Key figure for Nicaragua: Nicaragua's economy is characterized by a mix of agriculture, industry, and services, with agriculture historically being a significant sector. Agriculture: Agriculture has traditionally been a crucial sector in Nicaragua's economy, employing a significant portion of the workforce and contributing to export earni…
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Economic overview
- Economic Overview
Nicaragua's economy is characterized by a mix of agriculture, industry, and services, with agriculture historically being a significant sector.
Agriculture: Agriculture has traditionally been a crucial sector in Nicaragua's economy, employing a significant portion of the workforce and contributing to export earnings.
Vital agricultural products include coffee, bananas, sugar, beef, tobacco, and various fruits and vegetables.
Industry: Nicaragua has a growing industrial sector, with manufacturing activities focused on food processing, beverages, textiles and apparel, construction materials, and machinery.
The country has also attracted foreign investments in automotive harness manufacturing and light manufacturing sectors.
Services: Nicaragua's services sector encompasses a range of activities, including tourism, telecommunications, banking, retail, and transportation.
Tourism, in particular, has seen growth in recent years, with Nicaragua's natural beauty, including beaches, volcanoes, and colonial cities, attracting visitors worldwide.
Exports and Trade: Nicaragua's main exports include coffee, beef, gold, seafood, sugar, and textiles.
The United States is Nicaragua's largest trading partner in terms of exports and imports.
The country also participates in regional trade agreements, such as the Central America-Dominican Republic Free Trade Agreement (CAFTA-DR), facilitating trade with the United States.
Challenges: Nicaragua faces several economic challenges, including poverty, inequality, and vulnerability to natural disasters such as hurricanes and droughts.
Political instability and social unrest have also impacted the economy, affecting investor confidence and leading to a decline in foreign investment.
Infrastructure: Nicaragua has invested in infrastructure development, including roads, ports, and energy infrastructure.
Improving infrastructure is crucial for supporting economic growth and attracting investment.
Government Policies: The Nicaraguan government has promoted economic development, including initiatives to attract foreign investment, support small and medium-sized enterprises (SMEs), and diversify the economy.
However, political tensions and concerns about democratic governance have raised uncertainty about the direction of economic policies in recent years.
- Industries
food processing, chemicals, machinery and metal products, textiles, clothing, petroleum refining and distribution, beverages, footwear, wood
- GDP - per capita (PPP)
$5,000.00 (USD)
- GDP - real growth rate
4%
GDP & growth
- GDP - Gross Domestic Product (PPP)
$34,980,000,000 (USD)
- GDP Per Capita
$5,000.00 (USD)
- GDP - real growth rate
4%
- GDP - official exchange rate
$12,320,000,000 (USD)
- GDP - composition, by end use
- household consumption: 82.7%
- government consumption: 6.5%
- investment in fixed capital: 28.8%
- investment in inventories: 0%
- exports of goods and services: 40.7%
- imports of goods and services: -58.7%
- GDP by Sector- agriculture
18.1%
- GDP by Sector- Industry
22.9%
- GDP by Sector- services
58.9%
- Industrial Growth Rate
1.5%
Prices & money
- Inflation Rate
4.7%
- Exchange Rate per US Dollar
gold cordoba (NIO)
- Currency Name and Code
Nicaraguan Cordoba (NIO)
- Fiscal Year
calendar year
- Commercial Bank Prime Lending Rate
12%
Employment & labor
- Labor Force
2,320,000
- Unemployment Rate
8%
- Unemployment - note
underemployment was 46.5% in 2008
- Major Industries
food processing, chemicals, machinery and metal products, textiles, clothing, petroleum refining and distribution, beverages, footwear, wood
- Agriculture Products
coffee, bananas, sugarcane, cotton, rice, corn, tobacco, sesame, soya, beans; beef, veal, pork, poultry, dairy products
- Population Below Poverty Line
48%
- Child Labor - # of children ages 5-14
223,992
- Child Labor - % of children ages 5-14
14%
- Child Labor - note
note: data represents children ages 5-17
Public finance
- Annual Budget
$1,421,000,000 (USD)
- Public Debt (% of GDP)
130%
- Budget Surplus or Deficit - percent of GDP
-0.3%
- Taxes and other revenues - percent of GDP
25.6%