Business and Economy: Working Towards the New Nicaragua
Nicaragua´s World Class Products
When Castro took over Cuba, some of the top Cuban cigar makers fled to Nicaragua and the cigars produced there are as good as anything you will find in Cuba. Nicaragua has a number of other world-class products, such as its Flor de Caña rum, coffee and beef.
However, the largest sector is service and tourism. The economic and social impact of tourism had led the government of Nicaragua to declare the industry a priority for the country's economic sustainable development.
Good Conditions for Growth in Nicaragua
The World Bank Group, "Doing Business" Report 2010, ranked Nicaragua as the fastest country in which to start a business in Central America. This same report also positioned Nicaragua as the country that best protects investors, measuring transparency of transactions, liability for self-dealing, shareholders' ability to sue officers and directors for misconduct and strength of investor protection index.
Nicaragua is gradually recovering from the global economic crisis as increased exports drove positive growth in 2010. The economy is expected to grow at a rate of about 3% in 2011. The country is developing with much room for future profit.
Nicaragua´s Trade Agreement With the USA
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.
The Free Trade Agreement signed with the USA represents an opportunity for the agricultural business of Nicaragua. The country wants to improve its production and quality capacity. Agricultural business and food processing, such as the international quality coffee, sugar cane, coffee, cacao and tobacco, have shown great potential.
Huge Potential for Nicaraguan Tourist Development
Since 1999, the Nicaraguan Tourism industry has experienced a steady growth rate mainly due to the country safety and also due to a Law on Incentives for the Tourism Industry. This law led to a major renovation of the Managua International Airport to comply with international regulations and requirements, and investment from national and international tourism firms.
The hotel industry has grown mainly in Managua with international chains such as Inter-continental, Barcelo Resort, Crown Plaza, Hilton-Princess, Best Western, and Holiday Inn, reinforcing the country's credibility as a tourism destination.
Natural Tourist Advantages
Nicaragua has advantages in terms of its natural diversity, unique pre-Columbian cultural heritage, Spanish colonial architecture, and ethnic groups with their own living cultures and traditions. Nicaragua has great resources for investment in traditional tourism segments, such as business tourism, beach tourism, and cultural tourism, particularly when dealing with cities that have a wealth of historical patrimony.
Nicaragua is also an ideal place for alternative tourism such as ecotourism, agro-tourism, sports tourism, soft-adventure and social or community service tourism, mainly lead by mission trips or non-profit organizations.
Learn more about Nicaragua's business climate by getting our free Nicaragua Handbook.