RAL 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

Economy
Nicaragua

Economy - overview:

Nicaragua has widespread underemployment, one of the highest degrees
of income inequality in the world, and the third lowest per capita
income in the Western Hemisphere. While the country has progressed
toward macroeconomic stability in the past few years, annual GDP
growth has been far too low to meet the country's needs, forcing the
country to rely on international economic assistance to meet fiscal
and debt financing obligations. In early 2004, Nicaragua secured
some $4.5 billion in foreign debt reduction under the Heavily
Indebted Poor Countries (HIPC) initiative, and in October 2007, the
IMF approved a new poverty reduction and growth facility (PRGF)
program that should create fiscal space for social spending and
investment. The continuity of a relationship with the IMF reinforces
donor confidence, despite private sector concerns surrounding
ORTEGA, which has dampened investment. The US-Central America Free
Trade Agreement (CAFTA) has been in effect since April 2006 and has
expanded export opportunities for many agricultural and manufactured
goods. Energy shortages fueled by high oil prices, however, are a
serious bottleneck to growth.

GDP (purchasing power parity):

$16.17 billion (2007 est.)

GDP (official exchange rate):

$5.723 billion (2007 est.)

GDP - real growth rate:

3.8% (2007 est.)

GDP - per capita (PPP):

$2,800 (2007 est.)

GDP - composition by sector:

agriculture: 16.9%
industry: 25.8%
services: 57.2% (2007 est.)

Labor force:

2.262 million (2007 est.)

Labor force - by occupation:

agriculture: 29%
industry: 19%
services: 52% (2006 est.)

Unemployment rate:

4.9% plus underemployment of 46.5% (2007 est.)

Population below poverty line:

48% (2005)

Household income or consumption by percentage share:

lowest 10%: 2.2%
highest 10%: 33.8% (2001)

Distribution of family income - Gini index:

43.1 (2001)

Investment (gross fixed):

31.8% of GDP (2007 est.)

Budget:

revenues: $1.115 billion
expenditures: $1.291 billion (2007 est.)

Fiscal year:

calendar year

Public debt: