Trade Profile - Nicaragua - International Trade Portal (2024)

According to the World Bank’s latest figures, trade represents around 115% of Nicaragua's GDP. A member of the WTO since 1995, the country’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 T-shirts, singlets, and other vests (12.9%), gold (12.6%), coffee (9.7%), insulated wires (9.7%), cigars, cheroots, cigarillos, and cigarettes (5.5%), whereas imports are led by petroleum oils (15.1%), T-shirts, singlets, and other vests (5.1%), fabrics (4.2%), and medicaments (3.8% - data Comtrade 2022).

Nicaragua’s main export partners in 2022 were the United States (52.3%), Mexico (12.9%), Honduras (7.3%), El Salvador (5.9%), Costa Rica (3.1%), and Guatemala (2.9%). The U.S. was also the main source of imports (26.9% of the total), followed by China (12.3%), Honduras (9.1%), Mexico (8.9%), Guatemala (7.4%), Costa Rica (5%). 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. In 2022, exports reached USD 7.3 billion against USD 11.2 billion in imports (+13.3% and +10.6% y-o-y, respectively). Concerning the trade of services, Nicaragua is a net exporter and, according to the latest available data from WTO, the country imported USD 1.1 billion worth of services in 2022, while exports totaled USD 1.5 billion. The overall trade balance was estimated at 15.6% of GDP in the same year (World Bank). As per the Banco Central de Nicaragua (BCN), in 2023, total exports reached USD 7,543.3 million, marking a 2.4% decline compared to the previous year. This drop was primarily due to an 8.9% decrease in free zone exports, partially offset by a 4% increase in merchandise exports. Growth in merchandise exports was fueled by higher exports from the mining sector (22.4%) and manufacturing sector (0.9%), although this was mitigated by declines in the fisheries (-9.7%) and agricultural (-5.3%) sectors. Meanwhile, the reduction in free trade zone exports was attributed to reduced placements of textile products (-15.2%), machined fishery products (-30.2%), African palm oil (-38.5%), among others. Total FOB imports amounted to USD 9,997.5 million in 2023, reflecting a 1.3% year-on-year decrease, driven by an 18.9% decrease in free zone imports, which overshadowed the 5.6% increase in merchandise imports.

Any Comment About This Content? Report It to Us.