- Spanish (official) 95.3%
- Miskito 2.2%
- Mestizo of the Caribbean coast 2%
- other 0.5%
The Pacific coast of Nicaragua was settled as a Spanish colony from Panama in the early 16th century. Independence from Spain was declared in 1821 and the country became an independent republic in 1838. Britain occupied the Caribbean Coast in the first half of the 19th century, but gradually ceded control of the region in subsequent decades. Violent opposition to governmental manipulation and corruption spread to all classes by 1978 and resulted in a short-lived civil war that brought the Marxist Sandinista guerrillas to power in 1979. Nicaraguan aid to leftist rebels in El Salvador caused the US to sponsor anti-Sandinista contra guerrillas through much of the 1980s. After losing free and fair elections in 1990, 1996, and 2001, former Sandinista President Daniel ORTEGA Saavedra was elected president in 2006 and reelected in 2011. The 2008 municipal elections, 2010 regional elections, 2011 presidential elections, 2012 municipal elections, and 2013 regional elections were marred by widespread irregularities. Nicaragua’s infrastructure and economy – hard hit by the earlier civil war and by Hurricane Mitch in 1998 – are slowly being rebuilt, but democratic institutions have been weakened under the ORTEGA administration.
Nicaragua, the poorest country in Central America and the second poorest in the Western Hemisphere, has widespread underemployment and poverty. The Dominican Republic-Central America-United States Free Trade Agreement (CAFTA-DR) has been in effect since April 2006 and has expanded export opportunities for many agricultural and manufactured goods. Textiles and agriculture combined account for nearly 50% of Nicaragua’s exports. In 2013, the government granted a 100-year concession to a newly formed Chinese-run company to finance and build an inter-oceanic canal and related projects, at an estimated cost of $40 billion. The economy grew 4.6% in 2013, despite a 33% decline in coffee export revenues due to a coffee rust fungus.