Page:RS22836 (IA RS22836-crs).pdf/2

Order Code RS22836

March 17, 2008

Nicaragua is a Central American nation bordering both the Caribbean sea and the Pacific ocean between Costa Rica and Honduras. Slightly smaller than the state of New York, Nicaragua has a population of roughly 5.4 million. With a per capita income level of $1000 (2006), Nicaragua is classified by the World Bank as a lower middle income developing country. Nicaragua is still largely an agricultural country, but its non-traditional exports (textiles, tobacco products, vegetables, gold) have expanded rapidly in the last few years. Nicaragua’s key development challenge is to boost growth rates to a level that can reduce poverty, which is especially severe in rural areas.