With an economy based on non traditional employment, the current unemployment levels, raising the food and services prices, and increasing poverty levels, Nicaraguan citizens are saying that this is enough. According to a study by M&R Consulting, over 62% of the Nicaraguans will like a better standard of living, and more than 50% is willing to emigrate to the U.S., Costa Rica, and Spain. Even within these figures there is hope for the country since over 73% of people recognized that the economy has improved during the last six years.
What could this mean to your business in Nicaragua:
The first thing that any business needs to remember is that Nicaragua is governed by a coalition of former revolutionary leaders, and new politicians, which could create challenges to find a compromise that could help the country continue to develop the a new economic model. The challenge is to answer the people’s demands for more and better jobs, without damaging the current achievements, and in a new competitive global economy. Thankfully even when the majority of the survey participants identified the Venezuela as the country that helps them the most (73.3%), less than a third consider that Nicaragua should follow the Venezuelan Neo-Socialist model.
According to the information from the World Bank, the country has experienced a substantial economic improvement reaching over 5% growth in 2011, and continues to consider its private industry one of the primary sources of growth. While the traditional industries in the country have been textiles, apparel, and food exports, the country is starting to identify opportunities in tourism and other industries.
If you have or are planning to expand your business into Nicaragua, you may experience increased government pressure for better wages and labor conditions, and potentially a revision to the country rules and regulations. Still with more than 500,000 young people unemployed, companies could find a willing workforce, and a business climate supported by the overwhelming majority of the population that considers that private enterprises are the way to continue to develop the country.