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Latin America Investment News on Viva Tropical

Why Haven’t You Heard How Good the Economy Is in Nicaragua?

Article Summary:

Nicaragua has improved its macro and human development from that of a war-torn country of the late 70s and 80s with high inflation and a devastated infrastructure to a booming economy by following a sustainable growth plan based on agricultural exports, textiles, and mining.

Photo Credit: Portafolio

Original Article Text From Portafolio via Google Translate:

Nicaragua, A Booming Economy

The Central American country has improved its macro and human development.

From the war-torn country of the late 70s and 80s, during the Cold War between the United States and the Soviet Union, with most of its infrastructure destroyed and inflation of 30 percent, gradually Nicaragua has been recovering its economy and human development.

In the last decade the country has shown a sustainable growth based on agricultural exports, textiles and mining.

Since 2005, and excluding the years of the global financial crisis of 2008 and 2009, the Central American country has shown an average growth rate of 4 percent, and this year is estimated GDP growth of 4.2 percent , two points higher than the initial estimate, and an accumulated inflation between 5.5 and 6.5 percent, down from 8 percent initially estimated, according to the central bank.

The country’s industry is composed of food processing, chemicals, machinery, textiles and beverages. According to the World Report of the Central Intelligence Agency (CIA) last year, the Central American country’s agricultural sector is based on the production and exploitation of coffee, bananas, sugar cane, cotton, rice, corn, beef , pork and chicken.

Agriculture accounts for about 60 percent of its total exports, while the other 40 percent is made up textiles and other products.

Exports will grow 15 percent this year, reaching just over 4,000 billion, while imports will rise 12 percent, to a figure of 6,300 million, mainly as consumer products, machinery, raw materials, It reports based on International Monetary Fund (IMF).

Its main market is outside the U.S., with 60 percent of its sales to that country, while their foreign purchases are more varied and involving countries like the United States, Venezuela, Costa Rica and China.

Tourism has become a major industry, which he left the country $ 377 million during 2011.

Despite the development of the last two decades, the country, according to FAO, is one of the most affected by poverty, with 20.1 percent of the population under the scourge.

In terms of human development, UNDP and with figures of 2011, the index for Nicaragua is 0.58, ranking 129 out of 187 countries since.

The Central American country shows an increase of 29 percent over the last 30 years. Nicaragua has a life expectancy of 74 years, while in 1980 it was only 58.5 years.

As for the school years, it is estimated that the country is 10.8, and for 30 years was 7.9. The literacy rate of the Central American country reaches 78 percent and spending on education is 3.9 percent of GDP.

The Gini coefficient of inequality is at 52, 3, 0 being perfect equality index.

Poverty has also declined in recent years, the population in absolute poverty is 11.3 percent, while the population below the income poverty line is 15.8%.

Link to Original Article:

From Portafolio

  • Robert in Canada

    And what’s the force behind the improvement of all Nicaraguan’s standard of living?

    Business, Low Taxes, and Free Enterprise.

    It’s not the high taxes and wasteful spending, government control of everything, hoards of bureaucrats, or volumes of regulations which crippled Venezuela, Greece, and other countries.

  • expat5150

    Who cares? What about the weather? The people? The culture? Things that really matter. Progress measured in terms of GDP growth is a banker scam. Money is not the answer to happiness. Quality of life is about people and relationships. Everyone chasing money like a drug only creates misery in the end. Look what happened in the USA.

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