Agriculture remains fundamental forNicaragua from both a macroeconomic and social view. It isthe largest sector of the Nicaraguan economy, and it remainsthe single biggest employer with around 30 percent of thelabor force and including processed foods, like meat andsugar, agriculture accounts for around 40 percent of totalexports value. Nicaragua appears to be gradually losingcompetitive edge of some of its key agricultural exportswithin the most important export markets. Agricultural totalfactor productivity of certain basic goods has been falling,which could be attributed to some extent for the limited useof improved technologies and the gaps in terms of thequality of its infrastructure and logistics services eventhough there have been some progress in this regard. Inspite of these trends, Nicaragua has the potential to expandproduction sustainably, on both the extensive and theintensive margins.
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