Which factors contributed to Nicaragua’s economic growth during the 2010s?

During the 2010s, Nicaragua experienced a period of economic improvement driven by several key factors:

• International Support: The country benefited significantly from foreign aid and support from international financial organizations. Notably, the PetroCaribe energy initiative provided by Venezuela allowed the government to acquire crude oil at discounted prices, with profits from reselling the oil funding social programs.1
• Trade and Investment: Nicaragua’s participation in the Central America–Dominican Republic Free Trade Agreement (CAFTA-DR) helped attract foreign direct investment and promote development.12
• Exports and Remittances: The economy was bolstered by strong performance in agricultural and mining exports, the diversification of maquiladora production, and an increase in cash remittances sent home by Nicaraguans working abroad.13

These combined factors helped reduce unemployment and contributed to steady GDP growth during the first decade of the renewed Sandinista administration, before the economy entered a downturn following social unrest in 2018 and the onset of the COVID-19 pandemic.41