.jpg)
Nicaragua Is #122
Nicaragua is #122 in Economic Freedom out of 176 Countries.
​​
Every year the Heritage Foundation, a leading U.S. nonprofit, produces the Index of Economic Freedom Report and ranks how free and open each country’s economy is.
With a score of 53.4, Nicaragua is classified as "Mostly Unfree":
When it’s about soccer, every Nicaraguans desperately wants to be #1. We need that passion where it really counts:
Want greater income and a better quality of life?
Improve economic freedom!
Evidence clearly shows that greater economic freedom leads to higher standards of living, increased job creation, improved education and healthcare, greater prosperity, and enhanced environmental stewardship.
.png)
What Does Being “Mostly Unfree” Mean for Nicaragua?
With a "Mostly Unfree" classification, this country faces considerable economic restrictions and institutional weaknesses that limit opportunity and growth. For the average citizen, this classification translates to restricted financial freedom, unreliable legal protections, and challenges in accessing fair and transparent governance, impacting overall stability and economic mobility.
What categories doES Nicaragua DO well in?
To do well ("mostly free") a country must score 70 - 79.9. To classify as excellent ("free") a country must score 80 or higher. Nicaragua scores relatively well in these areas (scores out of 100):
-
Fiscal Health 94.9
-
Tax Burden 74.6
-
Government Spending 74.3
Solutions
Nicaragua's three worst performing categories:
​
-
Judicial Effectiveness 10.5
-
Government Integrity 15.6
-
Property Rights 27.5
​
The country’s Judicial Effectiveness score of 10.5 out of 100 reflects severe issues within the legal system, including poor law enforcement and limited access to justice. This low score affects citizens by creating a lack of confidence in legal recourse, making property ownership and business investments risky. Improving judicial effectiveness would involve reforms to strengthen judicial independence, enhance legal training, and ensure transparent processes that protect citizens' rights.
​
With Government Integrity scoring 15.6 out of 100, corruption and lack of transparency are critical issues, leading to a mistrust of public institutions. This score affects daily life by fostering inefficiencies and mismanagement of public resources, which can limit services and economic opportunities. Strengthening government integrity could involve implementing robust anti-corruption policies, promoting transparency in public spending, and enhancing accountability to restore public confidence.
​
Property Rights, scoring 27.5 out of 100, indicates weak protections for ownership and difficulties in securing property investments. For the average citizen, this means uncertainty around property security, limiting long-term investments and economic growth. Addressing this would require legal reforms to safeguard ownership, streamline property registration, and ensure consistent enforcement to provide citizens with the confidence to invest securely.
Nicuragua's Economic Freedom over time:
