Economy (Nicaragua)
===================


     Overview:
         Government control of the economy historically has been extensive, although
         the CHAMORRO government has pledged to greatly reduce intervention. Four
         private banks have been licensed, and the government has liberalized foreign
         trade and abolished price controls on most goods. Over 50% of the
         agricultural and industrial firms remain state owned. Sandinista economic
         policies and the war had 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 by roughly 7% in 1989 and 4%
         in 1990, and remained about even in 1991. The agricultural sector employs
         44% of the work force and accounts for 15% of GDP and 80% of export
         earnings. Industry, which employs 13% of the work force and contributes
         about 25% to GDP, showed a drop of 7% in 1989, fell slightly in 1990, and
         remained flat in 1991; output still is below pre-1979 levels. External debt
         is one of the highest in the world on a per capita basis. In 1991 the
         inflation rate was 766%, down sharply from the 13,490% of 1990.
     GDP:
         exchange rate conversion - $1.6 billion, per capita $425; real growth rate
         -1.0% (1991 est.)
     Inflation rate (consumer prices):
         766% (1991)
     Unemployment rate:
         13%; underemployment 50% (1991)
     Budget:
         revenues $347 million; expenditures $499 million, including capital
         expenditures of $NA million (1991)
     Exports:
         $342 million (f.o.b., 1991 est.)
       commodities:
         coffee, cotton, sugar, bananas, seafood, meat, chemicals
       partners:
         OECD 75%, USSR and Eastern Europe 15%, other 10%
     Imports:
         $738 million (c.i.f., 1991 est.)
       commodities:
         petroleum, food, chemicals, machinery, clothing
       partners:
         Latin America 30%, US 25%, EC 20%, USSR and Eastern Europe 10%, other 15%
         (1990 est.)
     External debt:
         $10 billion (December 1991)
     Industrial production:
         growth rate NA; accounts for about 25% of GDP
     Electricity:
         423,000 kW capacity; 1,409 million kWh produced, 376 kWh per capita (1991)
     Industries:
         food processing, chemicals, metal products, textiles, clothing, petroleum
         refining and distribution, beverages, footwear
     Agriculture:
         accounts for 15% of GDP and 44% of work force; cash crops - coffee, bananas,
         sugarcane, cotton; food crops - rice, corn, cassava, citrus fruit, beans;
         variety of animal products - beef, veal, pork, poultry, dairy; normally
         self-sufficient in food
     Economic aid:
         US commitments, including Ex-Im (FY70-89), $294 million; Western (non-US)
         countries, ODA and OOF bilateral commitments (1970-89), $1,381 million;
         Communist countries (1970-89), $3.5 billion
     Currency:
         cordoba (plural - cordobas); 1 cordoba (C$) = 100 centavos