What is Nicaragua's economy primarily based on?

Nicaragua's economy is primarily based on agriculture, with a strong emphasis on coffee as a key export. Coffee has been one of the country's most important agricultural products, significantly contributing to its GDP and employment. The climate and fertile soil in Nicaragua create favorable conditions for coffee cultivation, making it a vital part of the agricultural sector. Aside from coffee, other agricultural products such as sugar, beef, and grains also play essential roles, but coffee stands out as the primary crop that has historically shaped the economy.

This agricultural focus distinguishes Nicaragua from nations that may rely more heavily on tourism, technology, mining, or manufacturing, showcasing the importance of its natural resources and traditional agricultural practices in driving economic growth and supporting livelihoods.