Nicaragua: Cost of Living
February 21, 2018
by Goinglobal
The largest country in Central America, Nicaragua is also the poorest country in the region, and the second-poorest country in the Western Hemisphere. Although poverty and extreme poverty levels have diminished considerably in the last five years, Nicaragua is still one of the most under-developed countries in Latin America. Access to basic services is still a problem for many, especially those in rural areas.
After years of political instability and serious economic difficulties, Nicaragua has implemented productive macroeconomic programs that have positively stimulated its economy over the last decade. In 2011, Nicaragua’s economy experienced an unprecedented 5.1% growth, and inflation was reduced to yearly single-digit figures. Since then, the country’s economy has known a relatively stable and positive evolution. Last year, the country registered a 4.5% annual GDP growth, while this year’s GDP growth is expected to be 4%.
Despite this small fluctuation, direct foreign investment and positive trade levels keep Nicaragua’s economy predictions positive for the near future, according to recent reports by World Bank. At the same time, this macroeconomic stability is allowing the government to implement, for the first time, long-term strategies to fight poverty and reduce inequalities. Developing these in rural areas will help provide better social services and infrastructure.
The beginning of the interoceanic canal plans (known as the “Interoceanic Grand Canal of Nicaragua”) has also brought positive prospects for Nicaragua’s future, but the construction of this 50 billion USD project has not started yet. Currently, there is no clear date for the beginning of construction, since the organizations involved in this project are still undertaking further evaluations on the potential canal’s impact. In the meantime, local farmers and citizens who will be displaced and affected by the canal have been demonstrating consistently against its construction. International activist organizations have also joined these protests, as they claim that “the authorities in Nicaragua have secretly sold the country’s future to the highest bidder and put thousands of people at risk of losing everything,” according to Erika Guevara-Rosas, Americas director at Amnesty International.
Because it offers Central America’s lowest cost of living and high levels of public safety, Nicaragua enjoys a reputation as a hidden gem for foreigners and retirees. In fact, International Living has ranked the country as one of the top ten best places to retire in the world for consecutive years.
- Managua, the country’s capital, is the second-cheapest city for foreigners in Latin America, according to the most recent Mercer rankings. Considering its 194th position in this list of 209 world cities, Nicaragua’s capital is among the least expensive places to live in the world.
- Granada, about an hour’s drive from Managua, is renowned for its rich cultural heritage and exceptional natural surroundings, and it is consistently ranked as one of the world’s best places to live for foreigners on a very limited budget.
- Other popular destinations among foreigners are San Juan del Sur, Matagalpa and the city of León.
On average, a couple can live comfortably in Nicaragua for 1,500 USD per month. A more luxurious lifestyle would cost around 2,000 USD per month. The cost of living for a single person can, of course, be lower. This budget includes rent for a furnished two-bedroom apartment, utilities, telecommunications, groceries, health care, entertainment and maid service three times a week.
In comparison to New York City, the average cost of living in Managua is 72% cheaper, and Granada is 69% cheaper.