A bitter civil war, natural disasters and other problems certainly took their toll on the Nicaraguan business sector in the last years of the 20th century. In the new century, however, things have improved greatly and prospects are bright for business in Nicaragua. The Nicaraguan GDP (Gross Domestic Product) was up by four percent in 2011. After Costa Rica, Nicaragua is now the favorite Central American nation for foreign investment. Foreign investors channeled $880.6 million dollars into Nicaragua in 2011, up from $508 million in 2010.
Nicaraguan residents and foreigners alike will find doing business in Nicaragua these days a profitable enterprise, where hard work and investment dollars will be met by favorable returns.
Nicaragua Real Estate
Nicaragua is in the midst of a real estate boom, particularly in the areas around the southern Pacific coast where tourism is beginning to take off. Nicaragua is also becoming an extremely popular destination for retirees, which is another factor in the real estate boom.
Nicaraguan tourism has been growing by approximately 20 percent every year, a rate that’s expected to continue. Nicaraguan property and other beach front parcels attractive to tourism-based business in Nicaragua are priced considerably below other Central American markets.
One complication here is that before the Sandinista party was deposed from power by the Chomorro government in the 1990s, there was a massive transfer of confiscated property including agricultural plots, homes and businesses. In some instances, therefore, it can be difficult to determine who actually owns the rights to a given parcel of land. People buying property would be well advised to hire an experienced attorney to oversee the transaction.
A Growing Economy
Consumer demand throughout Nicaragua is led by the tide of returning Nicaraguans. These citizens may have spent years in self-imposed exile throughout Canada and the United States. On the whole, these repatriating Nicaraguans are doctors, lawyers, engineers and other members of Nicaragua’s educated professional class. They return with high expectations for consumer goods and services, with which Nicaraguan businesses must provide them. They make an ideal market for many new enterprises.
They’re joined by a rising number of retirees, from the United States and other countries, looking to live out their golden years somewhere their money will stretch farther. These people are also a great market for upscale business endeavors.
Nonetheless, it must be kept in mind, that nearly half of all Nicaraguan citizens are rural inhabitants who live at or beneath the poverty line. Their purchasing power is small if not non-existent.
Nicaraguan Business Sectors
- Infrastructure: Nicaraguan road quality varies. Superb roads exist in some parts of the country, but over 16,000 kilometers of the country’s 19,000-kilometer road network are potholed dirt tracks. This makes the distribution of goods to outlying parts of the country problematic.
- Telephones: Landline usage is on the way out in Nicaragua as in most other parts of the world. Nonetheless, landlines remain a more affordable alternative to cell phones in Managua and other Nicaraguan cities. Cell phone usage can easily cost between 10 and 40 cents per minute.
- Internet: Private Internet connections are extremely expensive and very slow throughout Nicaragua, but more and more Internet café’s are springing up everywhere, allowing even those Nicaraguans who live in small towns access to the Information Highway.
The future looks exciting for business in Nicaragua. Entrepreneurs will have many opportunities to pursue profits in the evolving and expanding Nicaraguan marketplace.
To learn more about how you can get in on the Nicaragua business boom, visit http://www.granpacifica.com/business-economy.html for information.