Nicaragua

Quick Facts

🇳🇮
Capital:
Managua
Official Language(s):
Spanish
Currency:
Nicaraguan córdoba (C$)
Population:
6,624,554

Overview

Nicaragua, officially the Republic of Nicaragua, is the geographically largest country in Central America, comprising 130,370 km2 (50,340 sq mi). With a population of 7,142,529 as of 2024, it is the third-most populous country in Central America after Guatemala and Honduras.

Institutional Framework

The strength of a country's institutions directly impacts its economic development and stability. Strong institutions reduce uncertainty, protect property rights, and enable efficient markets through:
  • Rule of law and contract enforcement
  • Control of corruption
  • Government effectiveness and regulatory quality

* Indicators normalized to 0-100 scale

Economic Structure

The composition of an economy reveals its strengths, vulnerabilities, and potential for growth. Understanding the balance between sectors (agriculture, industry, services) and their sophistication helps assess economic resilience and development opportunities.

Economic Health & Trade

Economic Scale & Power

An economy with $14,144,060,853.136B(2021) GDP, showing strong growth at 10.3%(2021). Emerging economy with development potential.

GDP Growth
10.3%(2021)
GDP PPP
$47,088,770,380.598

Economic Structure

Economic structure shows 46.5%(2021) in services, 27.2%(2021) in industry, and 15.4%(2021) in agriculture. Balanced economic structure.

Economic Health & Trade

Economic health indicators show 6.1%(2021) unemployment and 4.9%(2021) inflation. Trade profile with 46.6%(2021) exports and 60.1%(2021) imports as % of GDP.

Unemployment
6.1%(2021)
Inflation
4.9%(2021)
Exports/GDP
46.6%(2021)
Imports/GDP
60.1%(2021)

Innovation & Competitiveness

Innovation capacity determines a country's ability to compete in the global knowledge economy. Key indicators like R&D investment, patent applications, and high-tech exports reveal the potential for sustainable economic growth and value creation.

High-Tech Exports

1.2

% of manufactured exports

ICT Exports

0.0

% of total goods exports

Digital Adoption

54.8

% of population using internet

Mobile Connectivity

97.1

Subscriptions per 100 people

Manufacturing Value

13.9

% of GDP

International Position

A country's integration into global markets affects its economic opportunities and risks. Trade relationships, financial flows, and geographic advantages or constraints shape its development trajectory and resilience to external shocks.

Financial & Trade Geography

Trade Profile

Trade represents 106.70%(2021) of GDP, with a trade balance of -13.46%(2021).

FDI Inflows
8.63%(2021)
FDI Outflows
0.10%(2021)

Financial Security

External Debt

110.07%(2021)

Foreign Reserves

$4.05B(2021)(5.2 months of imports)

Supply Chain & Technology

Technology Trade

ICT Imports
2.53%(2021)
High-Tech Exports
1.22%(2021)

Economic Structure

Manufacturing
13.93%(2021)
Services
46.45%(2021)

Trade Agreements & Dependencies

Trade Agreements

No major trade agreements

Critical Dependencies

    Growth Trajectory

    Understanding growth patterns helps predict future economic performance and development challenges. Key factors include productivity trends, investment levels, and structural transformation progress, which together determine long-term prosperity potential.

    Growth Potential Indicators

    Human Capital

    Education and workforce development

    24.4/100

    Trade Position

    International trade and competitiveness

    29.4/100

    Economic Structure

    Sectoral balance and sophistication

    30.9/100

    Demographics & Human Capital

    Demographics are fundamental to understanding a country's economic potential and challenges. The population structure influences everything from labor force availability to social security systems and public spending priorities.

    Demographics

    Population Overview

    Total population of 6,644,741(2021) with 1.2%(2021) annual growth. Median age is N/A with fertility rate at 2.321 births/woman(2021).

    Life Expectancy
    73.837 years(2021)
    Birth Rate
    20.507 per 1,000(2021)

    Age Structure

    Working-age population (64.8%(2021)) with youth at 30.1%(2021) and elderly at 5.2%(2021). Total dependency ratio: 54.4%(2021).

    Young Dependency
    46.4%(2021)
    Old Dependency
    8.0%(2021)

    Gender & Migration

    Population is 50.8%(2021) female and 49.2%(2021) male, with sex ratio of 1.035 males/female(2021) at birth. Net migration: -10,383(2021).

    Male Mortality
    188.247/1,000(2021)
    Female Mortality
    98.322/1,000(2021)

    Development Indicators

    Urban population growing at 1.7%(2021) annually, with 40.7%(2021) in rural areas. Literacy rate: N/A.

    Urbanization
    59.3%(2021)
    Infant Mortality
    13.5 per 1,000(2021)

    Population Structure

    The population pyramid visualizes the age and gender distribution, revealing crucial insights about economic sustainability. A balanced pyramid with a strong working-age population (typically ages 15-64) indicates greater economic potential, as this group supports both the younger and older generations through:
    • Labor force participation and productivity
    • Tax contributions to support social services
    • Innovation and economic growth

    An aging population (top-heavy pyramid) or youth bulge (bottom-heavy) can create demographic pressures on social systems and economic stability.

    Source: World Bank Development Indicators

    Security Context

    Security considerations fundamentally affect economic development and investment attractiveness. Both geographic factors and military capabilities influence a country's stability and its ability to protect economic interests and maintain sustainable growth.

    Geographic & Resource Security

    Food & Agriculture

    Arable land comprises 12.5%(2021) of territory, with 42.3%(2021) total agricultural land. Cereal yield: 2,403.1 kg/hectare(2021).

    Food Production Index
    128.13(2021)
    Cereal Production
    924,130.14 MT(2021)

    Energy Security

    Net energy imports at N/A of consumption. Renewable energy makes up 86.3%(2021) of total. Electricity access: N/A.

    Resource Rents
    N/A

    Water Resources

    Fresh water resources of 2,280 m³/capita(2021) per person. Annual precipitation: 27.485 mm(2021).

    Forest Area
    0.5%(2021)

    Environmental Vulnerability

    23508.8%(2021) of population affected by climate disasters. Forest coverage at 0.5%(2021) providing natural buffer.

    Annual Rainfall
    27.485 mm(2021)

    Military & Security

    Military Capabilities

    Military expenditure at N/A of GDP. Armed forces personnel: N/A ( N/A of labor force).

    Arms Exports
    313 USD(2021)
    Arms Imports
    N/A

    Strategic Status

    Military Alliances

    No major military alliances

    Nuclear Status

    Non-Nuclear State

    Security Environment

    Recorded 1,100(2021) battle-related deaths.Refugee population: 336,844(2021)Internally displaced: 340,029(2021)

    Strategic Geography

    Strategic Features

    • Borders 2 countries