According to the World Bank, trade represented 106% of Nicaragua's GDP in 2021. A member of the WTO since 1995, Nicaragua's trade policy reflects its efforts to integrate into the global economy, as well as to diversify its exports to have access to larger markets. Nicaragua's main exports include gold (13.4%), t-shirts (11%), insulated enamelled or anodised wires (9.1%), coffee (7.8%), and meat of bovine animals (5.7%). On the other hand, imports include petroleum oils (16.7%), knitted or crocheted fabrics (4.5%), t-shirts (4.1%), medicaments (4%), and insulated enamelled or anodised wires (2.3%). According to IMF Foreign Trade Forecasts, the volume of exports of goods and services increased by an estimated 2.3% in 2022 and is expected to increase by 2.1% in 2023, while the volume of imports of goods and services increased by an estimated 8.1% in 2022 and is expected to increase by 2.6% in 2023.
Nicaragua's main trade partners are the United States, Mexico, China, the Netherlands, Guatemala, El Salvador, Honduras, and Costa Rica. The Government of Nicaragua has recently made reforms to its free zone regime to promote international trade. The country has few customs duties and non-tariff barriers. The highest tariffs are imposed on items such as tobacco, alcohol and agricultural products (corn and rice). Nicaragua benefits from a free trade agreement between the United States and Central America (CAFTA) as well as a free trade agreement between the European Union and Central America, mostly focused on agricultural products.
Nicaragua's trade balance is structurally negative - reaching USD 1.8 billion in 2021 - a trend that is expected to continue in the coming years. Imports of goods and services represented 59% of GDP in 2021, while exports stood at 47% of GDP. In 2021, the country imported USD 9.8 billion worth of goods, while it exported USD 6.4 billion. Concerning the trade of services, Nicaragua is a net exporter and, according to the latest available data, the country imported USD 855 million worth of services in 2021, while exports totalled USD 1 billion.
Foreign Trade Indicators | 2017 | 2018 | 2019 | 2020 | 2021 |
---|---|---|---|---|---|
Imports of Goods (million USD) | 7,242 | 7,351 | 6,986 | 6,545 | 9,826 |
Exports of Goods (million USD) | 5,170 | 5,014 | 5,273 | 5,087 | 6,495 |
Imports of Services (million USD) | 983 | 913 | 808 | 591 | 855 |
Exports of Services (million USD) | 1,465 | 1,259 | 1,267 | 882 | 1,043 |
Imports of Goods and Services (Annual % Change) | 3 | -15 | -3 | 0 | 19 |
Exports of Goods and Services (Annual % Change) | 10 | -2 | 6 | -9 | 18 |
Trade Balance (million USD) | -2,370 | -1,604 | -1,056 | -928 | -1,876 |
Foreign Trade (in % of GDP) | 96 | 94 | 95 | 89 | 106 |
Imports of Goods and Services (in % of GDP) | 55 | 52 | 50 | 47 | 59 |
Exports of Goods and Services (in % of GDP) | 41 | 42 | 45 | 42 | 47 |
Source: WTO – World Trade Organisation ; World Bank - Latest available data.
Main Customers (% of Exports) |
2022 |
---|---|
United States | 52.3% |
Mexico | 12.9% |
Honduras | 7.3% |
El Salvador | 5.9% |
Costa Rica | 3.1% |
See More Countries | 18.4% |
Main Suppliers (% of Imports) |
2022 |
---|---|
United States | 26.9% |
China | 12.3% |
Honduras | 9.1% |
Mexico | 8.9% |
Guatemala | 7.4% |
See More Countries | 35.3% |
Source: Comtrade, Latest Available Data
Source: Comtrade, Latest Available Data
To go further, check out our service Import Export Flows
0.9 bn USD of services exported in 2019 | |
---|---|
56.82% | |
Personal travelPersonal travel | 55.45% |
Business travelBusiness travel | 1.37% |
20.45% | |
11.75% | |
6.64% | |
3.63% | |
0.71% |
0.8 bn USD of services imported in 2019 | |
---|---|
46.73% | |
21.50% | |
Personal travelPersonal travel | 20.97% |
Business travelBusiness travel | 0.53% |
12.53% | |
9.64% | |
5.53% | |
2.06% | |
1.73% | |
0.14% | |
0.13% |
Source: United Nations Statistics Division, Latest Available Data
Member of Central American Four (CA-4)
Member of Central American Four (CA-4)
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Latest Update: September 2023