Imports and Exports
Nicaragua’s top exports consist of coffee and gold. It’s top imports consist of refined petroleum and crude petroleum. Nicaragua is a labor abundant country and as such, produces labor-intensive goods such as clothing and other goods that utilize labor. Many of its imports include industrial and capital-intensive goods (like cars) that are used in the production of its exports. The graph below shows that the U.S. consumes half of Nicaragua’s imports whereas Nicaragua only consumes 17.6% of its imports from the U.S. The Nicaragua is a big trading partner with the U.S, relying on the U.S. to consume a lot of its exports. Gold has also risen to become Nicaragua’s top export. After incentives and a co-operative attitude towards foreign investment, production of gold has increased by 250% since 2009.
Annual Trends and Forecast
Nicaragua has had a steady growth in real GDP the past few years and is expected to grow more slowly in the next few years. Nicaragua’s GDP is also growing at a faster rate than Latin America and the rest of the world, showing that overall Nicaragua’s economy is improving. A slowdown in real GDP growth in 2014 will extend into 2015 as external demand stays modest and drought harms output of export goods.
Nicaragua in comparison to the rest of Latin America
Nicaragua still has the lowest GDP in Latin America and the second lowest GDP per capita in the world, behind Haiti. Although Nicaragua continues to be one of the poorest countries in Latin America and in the world, its economy is continuing to grow. Nicaragua is in the middle of the pack in GDP growth and has had one of the larger consumer price increases compared to other countries. Annual inflation is at around 7.2% . The rise in the consumer price index (CPI) is largely attributed to rising prices of education, hotels, restaurants, food, and beverages.
Economist Intelligence Unit:(http://country.eiu.com/nicaragua)
MIT Observatory of Economic Complexity (OEC): (http://atlas.media.mit.edu/profile/country/nic/)