Country Profile: Nicaragua

Nicaragua, located in Central America between Costa Rica and Honduras, is bordered by both the Caribbean Sea and the North Pacific Ocean. Home to a population of approximately 6.7 million, the nation has experienced historical turmoil, including civil wars and political instability, notably under President Daniel Ortega since 2007. The economy, characterized as low-income, has faced challenges such as the impacts of COVID-19, political repression, and natural disasters, while significant remittances fuel part of its GDP. Despite these obstacles, Nicaragua retains a rich cultural heritage and abundant natural resources.

Geography

Nicaragua is the largest country in Central America, with a total area of 130,370 sq km. The terrain features extensive Atlantic coastal plains and mountainous interiors, with significant resources such as gold, silver, and timber. The climate varies from tropical in lowlands to cooler in the highlands, with major lakes like Lago de Nicaragua being the largest freshwater body in Central America.

910 km of coastline.
1,253 km of land borders with Costa Rica and Honduras.
42.3% of land is agricultural; 40.1% is forested (2023 est.).
The highest point is Mogoton at 2,085 m.

People and Society

Nicaragua's population is estimated at 6,739,380 (2025), with a diverse ethnic composition: 69% Mestizo, 17% White, 9% Black, and 5% Indigenous. The predominant language is Spanish, spoken by 99.5% of the population. Urbanization is on the rise, with 59.8% living in urban areas, particularly around the capital, Managua.

25.1% of the population is aged 0-14 years.
6% are aged 65 and over (2024 est.).
Life expectancy is 74.7 years (2024 est.).
The birth rate is 16.07 births/1,000 population (2025 est.).

Economy

Nicaragua's economy is classified as low-income, with a GDP (PPP) estimated at $52.989 billion for 2024. Despite nearly two decades of growth until 2018, it has faced setbacks due to various crises, including the pandemic and political instability. Remittances constitute 26.6% of GDP, supporting a significant portion of the population.

GDP per capita is $7,700 (2024 est.).
24.9% of the population was below the poverty line in 2016.
Unemployment rate is currently at 4.6% (2024 est.).
Inflation rate is projected at 4.6% (2024 est.).

Government

Nicaragua operates as a presidential republic with Daniel Ortega serving as president since 2007. The government is characterized by a consolidation of power under Ortega’s Sandinista party, which has suppressed opposition and limited democratic processes. The last general elections were held in 2021, leading to widespread allegations of irregularities.

The legislative assembly has 91 seats, with elections every 5 years.
The next presidential election is scheduled for November 2026.
16 years is the minimum voting age for suffrage.

Military and Security

The Armed Forces of Nicaragua comprise a land, naval, and air force, with around 12,000 active personnel. Military expenditures are relatively low at 0.5% of GDP (2024 est.). The military's primary responsibilities include national defense, internal security support, and cooperation with police forces.

The military operates with secondhand Russian or Soviet-era equipment.
Military service is voluntary for ages 18-30.

Energy

Nicaragua's electricity access is significant, with 86.5% of the population connected as of 2022. The country generates electricity from a diverse mix of sources, including hydroelectric, geothermal, and fossil fuels.

Installed generating capacity is 1.849 million kW (2023 est.).
Total energy consumption reached 10.66 million Btu/person (2023 est.).

Environment

Nicaragua faces environmental challenges such as deforestation, soil erosion, and water pollution. The country is signatory to various international environmental agreements addressing climate change and biodiversity.

Deforestation and water pollution are significant concerns.
Urbanization rate is estimated at 1.45% annually (2020-2025).

Transportation

Nicaragua has a functioning transportation network, including 39 airports and a small merchant marine fleet. The country has five main ports facilitating trade and transport.

Total ports amount to 5 (2024).
234,000 fixed-line telephone subscriptions (2023 est.).

Communications

The telecommunications sector in Nicaragua includes a growing number of mobile subscriptions and internet users, with 58% of the population using the internet as of 2023.

7.33 million mobile cellular subscriptions (2024 est.).
371,000 fixed broadband subscriptions (2023 est.).

Key Metrics

Metric	Value	Note
Population	6,739,380	(2025 est.)
Area	130,370 sq km
GDP (PPP)	$52.989 billion	(2024 est.)
Birth Rate	16.07 births/1,000	(2025 est.)
Life Expectancy	74.7 years	(2024 est.)
Unemployment Rate	4.6%	(2024 est.)
Energy Consumption per Capita	10.66 million Btu	(2023 est.)
Electricity Access	86.5%	(2022 est.)
Percentage of Population Below Poverty Line	24.9%	(2016 est.)
Inflation Rate	4.6%	(2024 est.)