s centered in the white band; the coat of arms features
a triangle encircled by the words REPUBLICA DE NICARAGUA on the top and
AMERICA CENTRAL on the bottom; similar to the flag of El Salvador, which
features a round emblem encircled by the words REPUBLICA DE EL SALVADOR EN
LA AMERICA CENTRAL centered in the white band; also similar to the flag of
Honduras, which has five blue stars arranged in an X pattern centered in the
white band

:Nicaragua Economy

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: