Overview: Government control of the economy is extensive. The financial system is directly controlled by the state, which also regulates wholesale purchasing, production, sales, foreign trade, and distribution of most goods. Over 50% of the agricultural and industrial firms are state owned. Sandinista economic policies and the war have produced a severe economic crisis. The foundation of the economy continues to be the export of agricultural commodities, largely coffee and cotton. Farm production fell 5.4% in 1986, the third successive year of decline. The agricultural sector employs 44% of the work force and accounts for 23% of GDP and 86% of export earnings. Industry, which employs 13% of the work force and contributes 26% to GDP, showed a modest gain of only 1.6% in 1986 and remains below pre-1979 levels. External debt is one of the highest in the world on a per capita basis. In 1988 the inflation rate was estimated at 16,000% and growing. Shortages of basic consumer goods such as food and gasoline are severe.

GDP: $2.1 billion, per capita $610; real growth rate - 8.0% (1988)

Inflation rate (consumer prices): 16,000% (1988 est.)

Unemployment rate: 22% (1987)

Budget: revenues $0.9 billion; expenditures $1.4 billion, including capital expenditures of $0.15 billion (1987)

Exports: $240 million (f.o.b., 1988 est.); @m5commodities--coffee, cotton, sugar, bananas, seafood, meat, chemicals; @m5partners--CEMA 40%, OECD 39%

Imports: $800 million (c.i.f., 1988 est.); @m5commodities--petroleum, food, chemicals, machinery, clothing; @m5partners--CEMA 52%, EC 12%, Mexico 10%, CACM 6%

External debt: $6 billion (December 1988)

Industrial production: growth rate 1.6% (1986)

Electricity: 379,000 kW capacity; 1,258 million kWh produced, 370 kWh per capita (1988)

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

Agriculture: cotton, coffee, sugarcane, rice, corn, beans, cattle

Aid: US commitments, including Ex-Im (FY70-82), $290 million; Western (non-US) countries, ODA and OOF bilateral commitments (1970-86), $881 million; Communist countries (1970-87), $2.3 billion

Currency: cordoba (plural--cordobas); 1 cordoba (C$) = 100 centavos

Exchange rates: cordobas (C$) per US$1--4,200.00 (March 1989) is the market rate; official rate is 87.000 (August 1988), 0.070 (1987), 0.067 (1986), 0.027 (1985)

Fiscal year: calendar year

NOTE: The information regarding Nicaragua on this page is re-published from the 1989 World Fact Book of the United States Central Intelligence Agency. No claims are made regarding the accuracy of Nicaragua Economy 1989 information contained here. All suggestions for corrections of any errors about Nicaragua Economy 1989 should be addressed to the CIA.