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Nicaragua and Central America.

According to Mario Alonso, president of Banco Central de Nicaragua, "thanks to the implementation of sound policies, Nicaragua reached the relief of over 80 percent of its foreign debt under the HIPC initiative. This, coupled with fresh resources available to help finance its public investment plan and its balance of payments, support Nicaragua's financial viability. In 2004, GDP grew 4.2 percent. During the past three years, the country has achieved macroeconomic stability, developing new investment and market opportunities and pro actively reinserting itself commercially into the Central America and the world concert".

Throughout the last few years, Nicaragua has undergone a surprising economic transformation. Since its inception in 2002, the economic policy of President Enrique Bolanos' government and his economic team has focused on creating an atmosphere of trust and opportunity to accelerate economic growth led by the private sector, and to reduce extreme poverty, fiscal deficits and the burden of foreign and domestic debt. At the center of this policy lies the support of multilateral financial institutions and the international community to Nicaragua for maintaining a program of growth and macroeconomic stability. The program includes structural reforms, clearer "rules of the game" and the strengthening of transparency in the administration, governance and the rule of law.

Nicaragua is a nation on the way to modernisation, with a long-term vision, and with business opportunities for local and foreign private investments in areas such as energy, tourism, finance, light manufacture, construction, agriculture and agro industry, fishing, forestry and coffee, among others. Private investment, supported by the public investment program, will allow the country to maintain a sustainable economic growth to generate more jobs, social development and improve the lives of its citizens.

Nicaragua is also an active participant in the process of Central America's trade, financial and economic integration, which offers investors access to a market with minimised borders. In 2004 the region achieved an economic growth of 3.5 percent. Together, the Central American countries represent a total GDP of some US$72 billion and a foreign trade volume of nearly US$42 billion.

This market will grow even more with last year's signature of the Free Trade Agreement between Central America and Dominican Republic with the United States of America (DRCAFTA). The agreement will allow investors in the region to have access with favourable conditions to the U.S. markets, adding new business opportunities. Furthermore, the region hopes to advance negotiations for a trade agreement with the European Union.

Nicaragua, just as the rest of Central America, has a new face today. Its new atmosphere of political and economic stability has turned it into an attractive destination for investment.
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Author:Alonso, Mario
Publication:Latin Trade
Article Type:Advertisement
Geographic Code:2NICA
Date:Apr 1, 2005
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