Over the past decade, Nicaragua has seen some incredible changes take place within its borders. From a growing economy to a rise in international investments, the country is becoming an increasingly appealing place to invest, visit or even retire.
The following are just a few of the facts regarding the business and economy in Nicaragua that might surprise you, convince you to join the savvy investors investing in the nation, or even encourage you to make Nicaragua your next vacation destination.
It's Easy to Start a Business in Nicaragua
Many foreign investors and aspiring business owners are concerned that starting a corporation internationally in a destination like Nicaragua will be challenging, but the reality is the exact opposite.
Starting a new business is actually incredibly simple in Nicaragua, and the government strongly encourages foreign investors to move assets into the country by offering tax incentives and streamlined business practices.
Foreign Investment in Nicaragua is Increasing
Thanks in large part to the ease of business as mentioned above, foreign investment is on the rise in Nicaragua. FDI, or foreign direct investment, increased by an impressive 7 percent in 2012. This bodes well on its own, but it is even more astounding when you realize that global foreign direct investment actually decreased by a massive 18 percent during the same year. Clearly, many savvy investors feel comfortable investing in Nicaragua's economy and markets.
Nicaragua's GDP is on the Rise
One of the biggest markers of a country's economic success is not just the exact number of the GDP, or gross domestic product, but also the direction that the GDP is heading. While the United States saw just a 3-percent increase in GDP for the year 2012, for example, Nicaragua saw a boost of 4.7 percent.
CAFTA Increased Export for Nicaraguan Businesses
One of the biggest positive influences on the Nicaraguan business landscape was the adoption of the Central American Trade Agreement, or CAFTA, in 2006. This encouraged exports of local products, increasing profits for businesses in Nicaragua. Today, some of the biggest exports out of Nicaragua include shrimp, coffee, gold, lobster and sugar.
The Tourism Economy is on the Rise
While tourism is still just a portion of the country's total economy, it is a sector that is rapidly increasing in value. Over the past decade, tourism has grown exponentially in Nicaragua with some of the most appealing aspects being surfing beaches, an affordable cost of living and eco-tourism. As the tourism economy rises, Nicaraguan businesses of all kinds can expect positive changes.
For investors, residents and retirees, Nicaragua's business and economy holds a lot of promise. The tourism economy is on the rise, CAFTA has increased export of local goods, the GDP for the nation is increasing steadily and foreign investment in everything from companies to personal real estate is also on the rise.