ilar to the flag of Honduras, which has five blue
stars arranged in an X pattern centered in the white band

_*_Economy
_#_Overview: Government control of the economy historically has been
extensive, although the Chamorro government has pledged to reduce it.
The financial system is directly controlled by the state, which also
regulates wholesale purchasing, production, sales, foreign trade, and
distribution of most goods. Over 50% of the agricultural and industrial
firms are state owned. Sandinista economic policies and the war
have 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, the fifth
successive year of decline. The agricultural sector employs 44%
of the work force and accounts for 23% of GDP and 86% of export earnings.
Industry, which employs 13% of the work force and contributes about
25% to GDP, showed a drop of 7% in 1989 and remains below
pre-1979 levels. External debt is one of the highest in the world on a
per capita basis. In 1990 the annual inflation rate was 11,800%, sharply
up from 1,800% in 1989.

_#_GDP: $1.7 billion, per capita $470; real growth rate - 1.0% (1990
est.)

_#_Inflation rate (consumer prices): 11,800% (1990)

_#_Unemployment rate: 35% (1990)

_#_Budget: revenues $244 million; expenditures $550 million, including
capital expenditures of $73 million (1988)

_#_Exports: $298 million (f.o.b., 1989);

commodities--coffee, cotton, sugar, bananas, seafood, meat,
chemicals;

partners--OECD 75%, USSR and Eastern Europe 15%, other 10%

_#_Imports: $710 million (c.i.f., 1989);

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: $9 billion (December 1990)

_#_Industrial production: growth rate - 7% (1989); accounts
for about 25% of GDP

_#_Electricity: 415,000 kW capacity; 1,342 million kWh produced,
360 kWh per capita (1990)

_#_Industries: food processing, chemicals, metal products, textiles,
clothing, petroleum refining and distribution, beverages, footwear

_#_Agriculture: accounts for 23% 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; norma