Economic 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.
Environmental Issues
Deforestation; soil erosion; water pollution
Government Type
Republic
Population
5,785,846 (july 2008 est.)
Location
Central america, bordering both the caribbean sea and the north pacific ocean, between costa rica and honduras
Area
Total: 129,494 sq km
land: 120,254 sq km
water: 9,240 sq km
Slightly smaller than the state of new york
Country Aliases
Conventional long form: republic of nicaragua
conventional short form: nicaragua
local long form: republica de nicaragua
local short form: nicaragua
Capital
Name: managua
geographic coordinates: 12 09 n, 86 17 w
time difference: utc-6 (1 hour behind washington, dc during standard time)
Military Service
17 years of age for voluntary military service; tour of duty 18-36 months (2008)
International Disputes
Memorials and countermemorials were filed by the parties in nicaragua's 1999 and 2001 proceedings against honduras and colombia at the icj over the maritime boundary and territorial claims in the western caribbean sea, final public hearings are scheduled for 2007; the 1992 icj ruling for el salvador and honduras advised a tripartite resolution to establish a maritime boundary in the gulf of fonseca, which considers honduran access to the pacific; legal dispute over navigational rights of san juan river on border with costa rica
Sources: Central Intelligence Agency (CIA)
