Nicaragua: clothing and footwear output grows

Maquiladora operations continue to expand in Nicaragua. Footwear production has increased significantly in the past year, including companies such as include Clarks, Dillard's, Brown Shoe Company and Geox. For its part, the apparel sector has been growing since the end of the last decade.

Low-cost labor is a major factor in attracting foreign investors. At the equivalent of $42 per week, Nicaragua’s mininum wage is the lowest in the region. Nicaragua has in recent years eliminated what had been a chronic problem of power outages. In addition, the Ortega administration has streamlined procedures for investors, wanting to set up businesses in the country.

Under the terms of the trade agreement with the United States, manufacturers from any country in the region can export most footwear and clothing to the world’s biggest market duty-free. Some items still pay duties on importation, but these will disappear within a few years.


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