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@Nicaragua:Economy

Economy-overview: The Nicaraguan economy, devastated during the 1980s
by economic mismanagement and civil war, is beginning to rebound. In
1991 President CHAMORRO launched an ambitious economic stabilization
program that reduced inflation and obtained substantial economic aid
from abroad. Economic growth rose sharply in 1995-97, due to surges in
exports and efforts to enhance trade liberalization. The program,
however, hit some snags, and a 1994-97 IMF Enhanced Structural
Adjustment Facility (ESAF) signed by the CHAMORRO administration with
the Fund lapsed in September 1996 due to non-compliance. In 1997,
however, the IMF resumed negotiations for an ESAF with the ALEMAN
administration, and agreed to an ESAF in 1998. IMF approval of the
ESAF cleared the way for debt relief by the Paris Club later that year
and has opened the way for debt relief under the Highly Indebted Poor
Countries Initiative. Implementation of a 1997 property
accord-designed to resolve conflict over properties confiscated by the
Sandinistas in the 1980s-should also help inspire international
investor confidence. Strong growth is forecast for 1998, with
implementation of a 1997 free trade agreement with Mexico expected to
boost agricultural exports, although the industrial sector may come
under pressure from increased Mexican competition.

GDP: purchasing power parity-$9.3 billion (1997 est.)

GDP-real growth rate: 6% (1997 est.)

GDP-per capita: purchasing power parity-$2,100 (1997 est.)

GDP-composition by sector:
agriculture: 34%
industry: 21%
services: 45% (1995)

Inflation rate-consumer price index: 11.6% (1996)

Labor force:
total: 1.5 million
by occupation: services 54%, agriculture 31%, industry 15% (1995 est.)

Unemployment rate: 16%; underemployment 36% (1996 est.)

Budget:
revenues: $389 million
expenditures: $551 million, including capital expenditures of $NA
(1996 est.)

Industries: food processing, chemicals, metal products, textiles,
clothing, petroleum refining and distribution, beverages, footwear

Industrial production growth rate: 1.4% (1994 est.)

Electricity-capacity: 457,000 kW (1995)

Electricity-production: 1.76 billion kWh (1995)

Electricity-consumption per capita: 416 kWh (1995)

Agriculture-products: coffee, bananas, sugarcane, cotton, rice, corn,
cassava (tapioca), citrus, beans; beef, veal, pork, poultry, dairy
products

Exports:
total value: $635 million (