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Nicaragua
Searching for car hire is never much fun. That is why
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you arrive in Nicaragua. Choose Car Rental options on
size and manufacturer and pay in your own currency.
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The Pacific coast of Nicaragua was settled as a Spanish
colony from Panama in the early 16th century. Independence
from Spain was declared in 1821 and the country became
an independent republic in 1838. Britain occupied the
Caribbean Coast in the first half of the 19th century,
but gradually ceded control of the region in subsequent
decades. Violent opposition to governmental manipulation
and corruption spread to all classes by 1978 and resulted
in a short-lived civil war that brought the Marxist Sandinista
guerrillas to power in 1979. Nicaraguan aid to leftist
rebels in El Salvador caused the US to sponsor anti-Sandinista
contra guerrillas through much of the 1980s. Free elections
in 1990, 1996, and 2001, saw the Sandinistas defeated,
but voting in 2006 announced the return of former Sandinista
President Daniel ORTEGA Saavedra. Nicaragua's infrastructure
and economy - hard hit by the earlier civil war and by
Hurricane Mitch in 1998 - are slowly being rebuilt.
Nicaragua has widespread underemployment and the second
lowest per capita income in the Western Hemisphere. The
US-Central America Free Trade Agreement (CAFTA) has been
in effect since April 2006 and has expanded export opportunities
for many agricultural and manufactured goods. Textiles
and apparel account for nearly 60% of Nicaragua's exports,
but recent increases in the minimum wage will likely erode
its comparative advantage in this industry. Nicaragua
relies on international economic assistance to meet internal-
and external-debt financing obligations. In early 2004,
Nicaragua secured some $4.5 billion in foreign debt reduction
under the Heavily Indebted Poor Countries (HIPC) initiative,
and in October 2007, the IMF approved a new poverty reduction
and growth facility (PRGF) program that should create
some fiscal space for social spending and investment.
The continuity of a relationship with the IMF helps support
donor confidence, despite private sector concerns surrounding
ORTEGA, which has dampened investment. Economic growth
will slow in 2009, due to decreased export demand from
the US and Central American markets, lower commodity prices
for key agricultural exports, and low remittance growth
- remittances account for almost 15% of GDP.
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