
Nicaragua is a capitalistic, free market system that wants to incentive growth through capitalistic models via investments, financing, and being able to create value out of that. With the new incentives that the government offers, businesses are able to build infrastructure and do business.
Traditionally, the economy of Nicaragua is focused primarily on agriculture, which is the number one economic output of the country. Tourism and trade are also growing quite quickly in Nicaragua. In April 2006, the US-Central American Free Trade went into effect and that helped dramatically in industries like textile, leather, and other Nicaraguan goods. Nicaragua can now produce in larger volumes because of the free trade agreement.
My family has had a business in Nicaragua for over a century. My father has had a business here in Nicaragua for the past 19 years selling real estate and has been very successful at it. 19 years ago, he came in as a pioneer and had an important role in helping develop several beach communities here in Nicaragua, such as Rancho Santana, Iguana Beach and Golf Club, and Guacalito, among other,s so we have seen these grow over the years.
As far as being an expat coming into a different country to start a business, it turned out well for my father. We are not going anywhere else right now. We don’t have to worry about the government expropriating our properties and just take them from us.
I am actually more worried if bigger external economies like China or the US tank. That worries me more than Nicaraguan expropriation because things like tourism in Nicaragua are highly dependent on the US economy and how it is functioning at any moment. Although, my gut feeling and what I have been hearing from clients is that if the economy of the US, for some reason, tanks, they are all going to come down here to Nicaragua. So it might even be a good thing for us here in Nicaragua because there will be a huge influx of expats trying to get out of the US if it happens.