The agricultural sector declined precipitously in the 1980s. Until the late 1970s, Nicaragua's agricultural export system generated 40 percent of the country's GDP, 60 percent of national employment, and 80 percent of foreign exchange earnings. Throughout the 1980s, the Contras destroyed or disrupted coffee harvests as well as other key income-generating crops. Private industry stopped investing in agriculture because of uncertain returns. Land was taken out of production of export crops to expand plantings of basic grain. Many coffee plants succumbed to disease.

In 1989, the fifth successive year of decline, farm production declined by roughly 7 percent in comparison with the previous year. Production of basic grains fell as a result of Hurricane Joan in 1988 and a drought in 1989. By 1990 agricultural exports had declined to less than half the level of 1978. The only bright spot was the production of nontraditional export crops such as sesame, tobacco, and African palm oil.

Services

The service sector was estimated to account for 56.8% of the country's GDP, and employs 52% of the active population. This section includes transportation, commerce, warehousing, restaurant and hotels, arts and entertainment, health, education, financial and banking services, telecommunications as well as public administration and defense.

Tourism in Nicaragua is one of the most important industries in the country. It is the second largest source of foreign exchange for the country and is predicted to become the first largest industry in 2007. The growth in tourism has positively affected the agricultural, commercial, finance, and construction industries as well.

Other statistics

Household income or consumption by percentage share: lowest 10%: 1.6%; highest 10%: 39.8% (1993)

Industrial production growth rate: 2.4% (2005 est.)

Electricity - production: 2.778 billion kWh (2006)

Electricity - production by source: fossil fuel: 53.43%; hydro: 35.34%; nuclear: 0%; other: 11.23% (1998)

Electricity - consumption: 2.929 billion kWh (2006)

Electricity - exports: 69.34 million kWh (2006)

Electricity - imports: 0 kWh (2006)

Agriculture - products: coffee, bananas, sugarcane, cotton, rice, corn, tobacco, sesame, Soya, beans; beef, veal, pork, poultry, dairy products; shrimp, lobsters

Exports - commodities: coffee, beef, shrimp and lobster, cotton, tobacco, beef, peanuts, sugar, bananas; gold

Imports - commodities: consumer goods, machinery and equipment, raw materials, petroleum products

Currency: 1 gold Cordoba (C$) = 100 centavos

Exchange rates: gold Cordoba (C$) per US$1 - 17.582 (2006), 16.733 (2005), 15.937 (2004), 15.105 (2003), 14.251 (2002)

Economy of Nicaragua
Currency	1 Córdoba (NIO) = 100 centavos
Fiscal year	Calendar year
Trade organizations	CAFTA, FTAA, WTO, GSTP
Statistics
GDP Ranking (2005)	103th by volume adjusted for PPP;
GDP PPP	$17.09 billion (2006 est.)
GDP growth rate	3.7% (2006 est.)
GDP per Capita	$3,100 (2006 est.)
GDP by sector	agriculture: 17.2% , industry: 25.9%, services: 56.9%%
Inflation rate	9.1% (2006 est.)
Pop below poverty line	48% (2005)
Labour force	2.204 million (2006 est.)
Labour force by occupation	agriculture: 29%, industry: 19%, services: 52% (2006)
Unemployment rate	3.8% (2006)
Main Industries	food processing, chemicals, machinery and metal products, textiles, clothing, petroleum refining and distribution, beverages, footwear, wood
Trading Partners
Exports	$1.978 billion f.o.b.; note - includes free trade zones (2006 est.)
Main Partners	US 65.9%, El Salvador 7%, Honduras 3.8% (2006)
Imports	$3.422 billion f.o.b. (2006 est.)
Main Partners	US 22.5%, Venezuela 10.5%, Costa Rica 7.7%, Mexico 7.2%, Guatemala 6.1%, China 4.8%, El Salvador 4.4% (2006) (2006)
Public Finances
Public Debt	83.1% of GDP (2006 est.)
Revenues	$996.7 million (2006 est.)
Expenditures	$1.211 billion (2006 est.)
Economic Aid	$471 million (2006 est.)