Nicaragua profile

Demography and Health

Nicaragua in 2024 is home to about 6.92 million people, a modestly populated country by regional standards. The demographic profile includes a birth rate of 19.4 per 1,000 people and a crude death rate of 4.59 per 1,000, yielding a population that grows primarily through natural increase but with limited net in-migration. Life expectancy at birth is 74.9 years, a solid outcome that sits in the middle of Latin America and the Caribbean, and under-5 mortality stands at 13.4 per 1,000 live births, signaling continued progress in child health albeit with room for improvement. The country shows a notable burden of undernourishment, with 19.6% of the population affected in 2022, underscoring persistent vulnerability in nutrition and food security that intersects with health and development outcomes. Net migration in 2024 was negative (-8,189), suggesting outward movement of people—often driven by economic opportunities, safety, or other household considerations—which can influence labor markets, aging of the population, and long-term growth dynamics. The total population is recorded at 6.916 million in 2024, accompanied by internet access at 58.2% in 2023, reflecting a growing but uneven digital footprint that can influence health information access, telemedicine, and social determinants of health. Health system capacity appears constrained: hospital beds are 0.9 per 1,000 people (2021), while current health expenditure is 8.95% of GDP (2022) and domestic general government health expenditure per capita (PPP) is 366 international dollars (2022). Taken together, these indicators paint a picture of a population with favorable longevity and maternal-child health gains but with limited health infrastructure and significant nutrition and access challenges that require targeted investment, better service delivery, and stronger primary health care to translate their demographic potential into improved well‑being.

Economy, Trade and Investment

Nicaragua’s economy displays small-country characteristics with a GDP per capita of 2,848 current US dollars and a GDP per capita, PPP of 8,709 international dollars in 2024, reflecting a cost of living-adjusted income level that supports a modest domestic market and export-oriented sectors. The structure of external trade shows exports of goods and services accounting for 40.5% of GDP in 2024, while imports amount to 58.1% of GDP, indicating a reliance on external inputs and consumer goods and suggesting that the country remains open to global markets but with a trade balance that depends on competitiveness, currencies, and supply chains. The current account balance stands at 4.15% of GDP in 2024, a positive signal that points to a manageable external position and capacity to attract financing or roll over obligations, though the sustainability of such a surplus depends on investment flows and terms of trade. Foreign direct investment net inflows reach 6.87% of GDP in 2024, a relatively healthy share that signals investor interest and potential for technology transfer, productivity gains, and job creation, while the FDI concentration appears favorable relative to GDP, possibly supporting growth in key sectors. The economy faces inflation at 4.62% in 2024, a level that suggests price stability within a reasonable band and a cushion for policy maneuvering. The country also demonstrates a meaningful, albeit modest, drive toward cleaner energy in the energy mix, with renewable energy comprising about 50.4% of total final energy consumption in 2021, which can help stabilize energy costs and reduce exposure to fossil fuel volatility. On the innovation front, high-technology exports are relatively small, at about 23 million current US dollars in 2023, ranking around 100 in the relevant index, indicating a limited base of high-tech production and export sophistication. This combination—solid external demand, a growing but still modest domestic market, and a concentration of investment in non-high-tech activities—suggests that Nicaragua’s growth trajectory may hinge on improving productivity, diversifying exports, strengthening institutions, and upgrading competitiveness in tradable sectors. The logistics environment shows challenges in trade and transport infrastructure, with a Logistics Performance Index score of 1.9 (2022) and a rank of 27, indicating room for reforms that reduce costs, shorten lead times, and enhance supply-chain resilience as the country integrates further with regional and global value chains.

Governance and Institutions

Measured governance indicators reveal meaningful challenges in Nicaragua’s institutional environment. Political Stability and Absence of Violence/Terrorism score -0.126 (2023) with a rank of 110, Regulatory Quality at -0.878 (rank 158), Rule of Law at -1.28 (rank 182), and Control of Corruption at -1.39 (rank 183), alongside Government Effectiveness at -1.08 (rank 172). Taken together, these negative values suggest limited effectiveness of formal institutions, weaker rule-of-law enforcement, and vulnerability to corruption—factors that can impede predictable policymaking, contract enforcement, and the business climate. The combination of subdued governance indicators with an otherwise open economy and a positive external balance underscores the importance of governance reforms to translate macro stability and investment inflows into broad-based inclusive growth. The relatively modest population and the external balances provide policy space, but without stronger governance, efficiency, and anti-corruption measures, the potential gains from FDI and trade facilitation may not be fully realized. In parallel, a positive external balance and moderate inflation give authorities some room to invest in public services and infrastructure while pursuing governance reforms that strengthen institutions, increase transparency, and bolster public trust.

Infrastructure and Technology

Nicaragua’s infrastructure and technology landscape is mixed. Internet penetration stands at 58.2% of the population in 2023, signaling substantial digital connectivity relative to some peers, but leaving a sizable segment without reliable online access that could hinder e-government, digital health, and e-commerce. The country has a relatively small high-technology export base, totaling about 23 million current US dollars in 2023, indicating limited domestic capabilities in advanced manufacturing and technology-driven sectors. Health infrastructure shows capacity constraints, with 0.9 hospital beds per 1,000 people in 2021, underscoring a tight resource base for inpatient care. The Logistics Performance Index score of 1.9 (2022) reinforces the perception of trade and transport infrastructure inefficiencies, implying higher costs and longer lead times for traders and investors. On the energy side, renewable energy accounts for roughly half of total final energy consumption (50.4% in 2021), pointing to a relatively favorable energy mix that can dampen fossil fuel exposure but also requires continuity of investment in grid modernization and storage to cope with variability in renewable supply. The overall infrastructure picture, therefore, combines opportunities in connectivity and clean energy with substantial gaps in healthcare capacity, logistics, and advanced-tech production that merit targeted investments, policy reforms, and capacity-building initiatives to improve productivity and attract diversified investment.

Environment and Sustainability

Nicaragua presents a profile of relatively low per-capita emissions, with total greenhouse gas emissions excluding LULUCF at 3.02 t CO2e per capita in 2023, and a notable share of energy derived from renewable sources (about 50.4% of total final energy consumption in 2021). This combination indicates a favorable starting point for climate-aware growth and decarbonization, provided policy coherence and private investment align with sustainable development goals. The level of water stress, measured as freshwater withdrawal, stands at 2.22 in 2021, suggesting moderate pressure on water resources and the need for continued water-management improvements, especially in agricultural areas subject to climate variability. Environmental health is intertwined with nutrition indicators; with 19.6% of the population undernourished in 2022, resilience in agricultural systems and climate-smart farming becomes essential to reduce vulnerability and improve food security. The health and environmental indicators together imply that sustainable development in Nicaragua will benefit from investing in clean energy infrastructure, climate adaptation, efficient water use, and resilient agricultural practices, while expanding access to nutrition and public health services to safeguard both ecological and human well-being.