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November 10, 2022

Nicaragua

Nicaragua, a Central American country bordering Honduras
and Costa Rica, is experiencing significant political
repression under the authoritarian rule of President Daniel
Ortega, aged 76, and his wife, Vice President Rosario
Murillo, aged 71. The erosion of democracy under the
Ortega-Murillo government has strained relations with the
United States and raised congressional concerns. Congress
has sought to monitor and refine U.S. sanctions policy
toward Nicaragua.
Figure I. Nicaragua MaD

Source: Congressional Research Service.

Political Situation
Daniel Ortega first rose to prominence as a leader of the
leftist Sandinista National Liberation Front (FSLN), which
toppled the U.S.-aligned Somoza dictatorship that ruled
Nicaragua from 1936 to 1979. Ortega was elected president
in 1984 but was defeated in 1990 after more than a decade
of armed conflict between the FSLN government and U.S-
backed Contra insurgents. From 1990 to 2001, Nicaragua
held three relatively free and fair elections in which power
changed hands peacefully between non-Sandinista
presidents. Ortega returned to power in 2006 in elections
that many observers also judged to be free and fair.
In ensuing years, Ortega's FSLN government supporters
increasingly manipulated democratic processes. Subsequent
elections won by Ortega in 2011 and 2016 were widely
judged to be seriously flawed. In 2021, during Ortega's
most recent election (his fifth overall and fourth
consecutive term), Ortega was widely condemned for
eliminating all viable candidates and parties from
participation.
In the past, the Ortega government's social welfare
programs have helped improve Nicaraguans' standard of
living and maintain a strong support base for the FSLN,
which Ortega used to consolidate power. In 2018, however,
government-approved tax reforms that included tax
increases and a reduction of social security benefits sparked

mass protests. The Ortega administration's repressive
response-which resulted in over 300 dead, thousands
injured, and hundreds detained and tortured-generated
condemnation worldwide.
Despite domestic and international calls for Nicaragua to
reform its electoral laws and hold free and fair elections, the
Ortega administration has continued to use antidemocratic
practices. In 2021, authorities arrested 40 opposition leaders
and barred them from participating in national elections.
The Organization of American States resolved that these
elections had no democratic legitimacy.
Nicaragua at a Glance
Population: 6.6 million (2022, IMF est.)
Area: 46,883 square miles, slightly smaller than Mississippi
GDP: $15.8 billion (2022, current prices, IMF est.)
Per Capita GDP: $2,380 (2022, current prices, IMF est.)
Key Import Partners: U.S. (24.9 %), China (12.5 %),
Mexico (8.8 %), Netherlands (7.4 %) (2021, TDM)
Key Export Partners: U.S. (56.5 %), Mexico (11.8 %), El
Salvador (6 %), Honduras (5.2 %) (2021, TDM)
Sources: International Monetary Fund (IMF); Trade Data
Monitor (TDM).
Currently, the government has closed more than 2,000
nongovernmental organizations involved in such issues as
human rights, medical care and resources, education, and
civil and social matters. According to the U.N. High
Commissioner for Human Rights, the Nicaraguan
government held more than 200 political prisoners as of
October 2022. More than 200,000 Nicaraguans have fled
the country for political and economic reasons since 2018,
according to the U.N. High Commissioner for Refugees. A
majority of those displaced have sought asylum in Costa
Rica, and some have sought entry into the United States.
Economic Environment
Nicaragua has the second-lowest per capita income in the
Western Hemisphere, according to the World Bank. The
Ortega administration generally has maintained market-
oriented economic policies, and economic growth averaged
4.2% from 2007 to 2017, according to the International
Monetary Fund (IMF). However, Nicaragua's gross
domestic product (GDP) contracted by 3.4% in 2018, 3.8%
in 2019, and 1.8% in 2020. Unemployment nearly doubled,
from 6.2% in 2019 to an estimated 11% in 2021. Experts
have attributed these recent years of economic downturn to
the effects of the country's political crisis, the Coronavirus
Disease 2019 (COVID-19) pandemic, and two major
hurricanes.

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