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Economy of Nicaragua


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ction, by value, was concentrated in Managua. The industrial-decentralization policy may help to slow the growth of the largest cities, while assisting in the redistribution of income and development of economies in impoverished areas. Major industries include food processing, cement production, metal fabrication, and oil refining. The Centroamérica power plant on the Tuma River in the Central highlands has been expanded, and other hydroelectric projects have been undertaken to help provide electricity to the nation's newer industries.

The economic core of Nicaragua is in the Pacific zone, and the railway and highway network reflects that concentration of activity. The government-owned rail system—an inefficient money loser—is gradually being replaced by truck transport. Transportation throughout the rest of the nation is often inadequate. For example, one cannot travel all the way by highway from Managua to the Caribbean coast. The road ends at the town of Rama. Travelers have to transfer and make the rest of the trip by riverboat down the Río Escondido—a five-hour journey.

Corinto is the only modern deepwater port in Nicaragua. It handles both agricultural exports and general-cargo imports. Petroleum is unloaded at Puerto Sandino, from which it travels by pipeline to a refinery in Managua. Trade with other nations in Central America has increased in recent years. Nicaragua has long been considered as a possible site for a new sea-level canal that could supplement the Panama Canal
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