the words
REPUBLICA DE NICARAGUA on top and AMERICA CENTRAL on the bottom;
also similar to the flag of Honduras which has five blue stars arranged
in an X pattern centered in the white band

- Economy
Overview: The economy experienced a modest recovery during the period
1983-86, after a sharp decline in the early 1980s. Real GDP grew by 1.5% a
year on the strength of value added by the manufacturing and service sectors.
In 1987 the economy expanded by 2.5% as agricultural output recovered from the
1986 drought. The agricultural sector accounts for 25% of GDP, employs about 40%
of the labor force, and contributes about 66% to total exports. Coffee is the
major commercial crop, contributing 60% to export earnings. The manufacturing
sector, based largely on food and beverage processing, accounts for 17% of GDP
and 16% of employment. Economic losses due to guerrilla sabotage total more
than $2.0 billion since 1979. The costs of maintaining a large military
seriously constrain the government's ability to provide essential social
services.

GDP: $5.5 billion, per capita $1,020 (1988); real growth rate 0.9% (1989
est.)

Inflation rate (consumer prices): 16.8% (September 1989)

Unemployment rate: 10% (1989)

Budget: revenues $688 million; expenditures $725 million, including
capital expenditures of $112 million (1988)

Exports: $497 million (f.o.b., 1989);
commodities--coffee 60%, sugar, cotton, shrimp;
partners--US 49%, FRG 24%, Guatemala 7%, Costa Rica 4%, Japan 4%

Imports: $1.1 billion (c.i.f., 1989);
commodities--petroleum products, consumer goods, foodstuffs, machinery,
construction materials, fertilizer;
partners--US 40%, Guatemala 12%, Venezuela 7%, Mexico 7%, FRG 5%, Japan 4%

External debt: $1.7 billion (December 1989)

Industrial production: growth rate 2.9% (1989)

Electricity: 669,000 kW capacity; 1,813 million kWh produced,
350 kWh per capita (1989)

Industries: food processing, textiles, clothing, petroleum
products, cement

Agriculture: accounts for 25% of GDP and 40% of labor force (including
fishing and forestry); coffee most important commercial crop; other
products--sugarcane, corn, rice, beans, oilseeds, beef, dairy products,
shrimp; not self-sufficient in food

Aid: US commitments, including Ex-Im (FY70-88), $2.4 billion; Western
(non-US) countries, ODA and OOF bilateral commitments (1970-87), $353 million

Currency: Salvadoran colon (plural--colones); 1 Salvadoran
colon (C) = 100 centa