Escape Artist
  • Features
    • Interviews
    • News
    • Field Notes
    • Trending
  • Your Escape Plan
    • Finance
    • Real Estate
    • Second Citizenship
    • Digital Nomadism
    • Events
  • Destinations
    • Europe
      • France
      • Germany
      • Italy
      • Portugal
      • Scandinavia
      • Spain
      • UK
      • Rest of Europe
    • Central America
      • Belize
      • Costa Rica
      • El Salvador
      • Guatemala
      • Honduras
      • Nicaragua
      • Panama
    • Others
      • Africa
      • Asia
      • Australia
      • North America
      • South America
  • Travel Tips
    • Know Before You Go
    • Packing List
    • Food + Culture
    • Health + Wellness
  • Subscribe
Escape Artist
  • Features
    • Interviews
    • News
    • Field Notes
    • Trending
  • Your Escape Plan
    • Finance
    • Real Estate
    • Second Citizenship
    • Digital Nomadism
    • Events
  • Destinations
    • Europe
      • France
      • Germany
      • Italy
      • Portugal
      • Scandinavia
      • Spain
      • UK
      • Rest of Europe
    • Central America
      • Belize
      • Costa Rica
      • El Salvador
      • Guatemala
      • Honduras
      • Nicaragua
      • Panama
    • Others
      • Africa
      • Asia
      • Australia
      • North America
      • South America
  • Travel Tips
    • Know Before You Go
    • Packing List
    • Food + Culture
    • Health + Wellness
  • Subscribe
👤

THE NUMBER ONE SOURCE FOR EXPATS, DIGITAL NOMADS, AND DREAMERS.

This field is for validation purposes and should be left unchanged.

The Nicaragua Canal – Follow the Smart Money into Nica

  • BY staffwriter
  • April 24, 2015
Total
0
Shares
0
0
0

The government of Nicaragua and a group from China have broken ground on the world’s largest infrastructure project. A $50 billion dollar dig that will connect the Pacific Ocean and the Caribbean Sea. The canal will send ships through Lake Nicaragua and be 278 kilometers when completed, three times longer than the Panama Canal.

According to the Nica government, the canal will bring in 250,000 jobs and transform the country’s economy. The canal also creates follow-on and real estate investment opportunities over the next 5 years for those who understand the market. I expect property values in certain areas to increase 3 to 6 times PV between 2015 and 2020. Here’s why:

The canal brings with it ports, roads, hotels, residential neighborhoods, tourist resorts, and an international airport. Most of this support infrastructure, including the airport and worker housing, are scheduled to be completed in 2020… then the canal construction will begin in earnest.

Nicaragua is currently the second poorest country in Latin America after Haiti with a GDP of $11 billion or $1,850 GDP per capita. It obviously has a lot of room to improve… a lot of investment upside.

Poverty is largely a rural problem and the canal will displace about 35,000 of these rural poor. The lands owned by farmers and indigenous tribes are being taken by developers for the canal proper and related projects. Fair compensation is determined by the government, similar to eminent domain in the United States and the United Kingdom. Much of the downward pressure on Nica’s per capital GDP is from these rural poor and will not impact individual investments in high value areas.

Construction of the canal, and then the jobs it brings with it, are guaranteed to be a major boost to Nicaragua’s economy. Currently near the bottom of Central and South America, many expect Nica’s GDP to double in the coming years, making certain regions and sectors of the country amazing investment opportunities for those willing to follow the Chinese.

Print

Current economic growth is 4.2% and the government hopes to reach 10% in the first three years of operation. This would mirror Panama’s, the strongest in South and Central America.  Similar to Nicaragua, Panama’s GDP is $42 billion, but $11,0374 per capita. Of course, banking, business and all other drivers of the Panama economy are well ahead of Nicaragua. The population of Nicaragua is about twice that of Panama.

The Nicaraguan canal will provide for the more efficient transport of goods from China, Japan and the rest of Asia to the US and Europe. It will also facilitate the movement of raw materials from Latin America and shale oil and natural gas from the US to Asia and Europe.

Of the jobs the project promises, about 50,000 are temporary construction jobs. The balance are permanent airport, hospitality, factory, shipping management, and other support positions.

As cash begins to flow into Nicaragua, so do opportunities. Improvements to infrastructure means more business minded travelers (sorry backpackers) and higher dollar tourists. The first 5 star resort opened last year, Mukul Luxury Resort and Spa in Guacalito de la Isla, Nicaragua. Mukul has been listed as one of the best hotels worldwide by Forbes, Conde Nast, and several other publications.

In fact, prospects are bright throughout Nicaragua. The International Monetary Fund (IMF) highlighted this country as an example for the rest of Latin American countries in a recent meeting. Investors who successfully leverage this momentum will see excellent results.

According to the IMF, Nicaragua’s growth rate is higher than the rest of Latin America and is projected to be 4.2% in 2015. The average for Latin America is 1.2% and for Central American countries it is 2.2% to 2.3%. According to Ming Zhu, Deputy Managing Director of the IMF, the macroeconomic policies implemented by the Government of Nicaragua are positive and should serve as an example for Latin America.

Also boding well for the future, Nicaragua has a low fiscal deficit (1.6%), total government debt declined from 49 to 42%, and the country’s external debt is at 46%, which is regarded as excellent. Panama’s fiscal debt was 4.1% in 2014 and it hopes for for 2% in 2015.

When the canal project hits its stride in 2020, expect Nicaragua to become a powerhouse in Central America. Investments in very specific regions of the country are expected to generate strong returns. To capitalize, you must study the build pattern and know when and where to enter the market.

If you are considering investing in this region, Nica is a strong buy recommendation over the next 5 years. If you have questions about Nicaragua, or would like to be introduced to a local expert, please drop me an email at christian@escapeartist.com. We do not offer investment advice, but will be happy to refer you to experts that do.

 

If you’re considering traveling or moving abroad, be sure to explore your healthcare options. Visit International Citizens Insurance to learn more and get a free quote.

Total
0
Shares
Share 0
Tweet 0
Pin it 0
Related Topics
  • investing
  • investing offshore
Previous Article

Ethical Investments Offer Major Returns

  • BY EA Editors
  • October 24, 2014
View Post
Next Article

ATM – “Temporarily” Out of Order

  • BY David J Drummond
  • December 15, 2015
View Post
You May Also Like
Low-Tax Countries to Save Money in 2025
View Post
Where Expats Are Moving to Keep More of Their Money
  • BY EA Editorial Staff
  • August 27, 2025
The search for a second passport has shifted from luxury to necessity for many Americans
View Post
America’s Second Passport Fever
  • BY EA Editorial Staff
  • August 25, 2025
Belize Offshore Banking
View Post
Why Belize’s Waters Run Deep in Offshore Banking
  • BY Luigi Wewege
  • August 20, 2025
International Banking Structures
View Post
Tax-Friendly Banking Solutions for International Investors
  • BY EA Editorial Staff
  • August 13, 2025
Global Residency Program and Citizenship Programs
View Post
Your Next Investment Should Be a Residency Program
  • BY EA Editorial Staff
  • August 6, 2025
Tunisia, North Africa - One of most affordable Countries to live
View Post
The Most Affordable Countries to Live in 2025
  • BY EA Editorial Staff
  • July 30, 2025
View Post
The House We Rebuilt in Georgia
  • BY Isha Sesay
  • July 28, 2025
Where old walls meet new beginnings, the €1 home story continues to unfold.
View Post
Inside Italy’s $1 Home Revolution
  • BY Isha Sesay
  • July 21, 2025
Trending Posts
  • Moving to Morocco: a palette of Tradition, Texture of Tradition 1
    Top 10 Things to Know if You’re Moving to Morocco
    • August 18, 2025
  • The search for a second passport has shifted from luxury to necessity for many Americans 2
    America’s Second Passport Fever
    • August 25, 2025
  • Croatias Tourism: Aerial view of Croatia’s stunning Adriatic coastline, where historic towns meet turquoise waters 3
    Croatia’s Journey to Wonder
    • August 22, 2025
  • Belize Offshore Banking 4
    Why Belize’s Waters Run Deep in Offshore Banking
    • August 20, 2025
  • Low-Tax Countries to Save Money in 2025 5
    Where Expats Are Moving to Keep More of Their Money
    • August 27, 2025
Subscribe
Know Before You Go
  • Friendly locals and relaxed daily life in The Gambia 1
    Could The Gambia Become Africa’s Next Digital Nomad Safari?
    • August 29, 2025
  • Croatias Tourism: Aerial view of Croatia’s stunning Adriatic coastline, where historic towns meet turquoise waters 2
    Croatia’s Journey to Wonder
    • August 22, 2025
  • Moving to Morocco: a palette of Tradition, Texture of Tradition 3
    Top 10 Things to Know if You’re Moving to Morocco
    • August 18, 2025
  • Albania Travel Guide: City views in Tirana, Albania on a summer afternoon 4
    Albania’s Bold New Beat
    • August 15, 2025
  • Luxury Travel Experiences with Christina Tan 5
    Inside the World of Luxury Travel with Christina Tan
    • August 11, 2025
Learn More
  • About Us
  • Contact Us
  • Subscribe
Why Subscribe

The newly imagined Escape Artist brings you fresh content with a global focus, and sharp, up-to-the-minute coverage of the joys, challenges, and opportunities of life abroad.

For a limited time, we’re offering a special discount on all subscription deals, so be sure to lock-in these incredible savings and start receiving top-notch travel and expat content today!

Sign up for the EA Newsletter

Get important news delivered directly to your inbox and stay connected!

This field is for validation purposes and should be left unchanged.
Escape Artist
  • Terms & Conditions
  • Privacy Policy
  • Cookies Policy
  • Disclaimer

Input your search keywords and press Enter.

Newsletter Subscription
Our Spring Sale Has Started

You can see how this popup was set up in our step-by-step guide: https://wppopupmaker.com/guides/auto-opening-announcement-popups/