Nicaragua Shows Excellent Economic Growth
Nicaragua has emerged as one of the safest and fastest-growing countries in Latin America and investment in Nicaragua property is certain to book handsome profits. Despite the general impression about the country being unstable and torn by strife, nothing can be farther than the truth. The democratic government is bent on improving the conditions all around and is keen on inviting foreign investments and business.
The atmosphere is conducive to investment in business and real estate and every effort is being made by the government to reduce poverty and obtain sustainable long-term economic growth. This has been reflected in the multifold increase in both foreign direct investment and a stupendous increase in the number of tourists visiting the country. Nicaragua was one of the first two recipients the U.S. government’s Millennium Challenge Account grant. Millennium Challenge Corporation awards the US $175 million grant to countries that “rule justly, invest in their people, and encourage economic freedom.” There is little more one can add to this recommendation.
This significant increase in foreign investment and exports growth are a direct result of the many unmatched advantages offered by Nicaragua to foreign investors. The Nicaragua government offers excellent tax rebates and incentives to foreign investors, the country is at a convenient distance from the US and labor is cheap. It is no longer necessary to look towards Asian markets to outsource production or BPO and other service sector contact offices. Nicaragua offers all their advantages of a favorable investment climate, highly competitive costs, and a productive labor force at a more strategic geographic location.
On-going reforms of the judicial system and administrative procedures, simplification of bureaucratic procedures will contribute positively to the improving business climate. Already the Free Zone (Export Processing Zone) practice has helped to attract many more foreign investors into Nicaragua particularly in the textile manufacturing, apparel, auto parts, and medical product assembly operations.
There are several industrial parks located near large cities like Managua, which largely provide services to businesses in the textile and apparel sector. Nicaragua has proved to be the easiest location in which to start a business in the Central American region. The presence of U.S. companies building power plants and telephone networks and selling hamburgers and pizza has added to the conviction that this economic growth is here to stay.