Flag description: three equal horizontal bands of blue (top), white, and blue with the national coat of arms centered in the white band; the coat of arms features a triangle encircled by the words REPUBLICA DE NICARAGUA on the top and AMERICA CENTRAL on the bottom; similar to the flag of El Salvador, which features a round emblem encircled by the words REPUBLICA DE EL SALVADOR EN LA AMERICA CENTRAL centered in the white band; also similar to the flag of Honduras, which has five blue stars arranged in an X pattern centered in the white band
Economy
Economy—overview: Prior to Hurricane Mitch in the fall of 1998, Nicaragua had been pursuing a number of impressive economic reforms and had begun to shed the legacy of a decade of civil war and economic mismanagement by posting strong annual growth numbers. The storm has put the reform effort on hold and has changed economic forecasts for the foreseeable future—Nicaragua, the poorest country in Central America was one of the hardest hit by the hurricane. Nicaragua sustained approximately $1 billion in damages and will probably see GDP growth slow by at least one percentage point in 1999. Hardest hit was the all-important agriculture sector, which is responsible for the majority of exports. As a result, the trade deficit is likely to balloon in 1999 to roughly $900 million. Significant aid and relief have helped to stabilize the country. In addition, the Paris Club and other creditors have offered substantial debt relief. Nevertheless, additional financing will be needed to restore the economy to its pre-Mitch condition.
GDP: purchasing power parity—$11.6 billion (1998 est.)
GDP—real growth rate: 4% (1998 est.)
GDP—per capita: purchasing power parity?$2,500 (1998 est.)
GDP—composition by sector: agriculture: 32% industry: 24% services: 44% (1997)
Population below poverty line: 50.3% (1993 est.)
Household income or consumption by percentage share: lowest 10%: 1.6% highest 10%: 39.8% (1993)
Inflation rate (consumer prices): 16% (1998 est.)