The name 'Nicaragua' seems to have meant 'surrounded by water' in an older, indigenous language that mixed with Spanish.
Nicaragua is the poorest country in Central America, and one of the poorest in the Americas. Approximately half of the population lives on about $1 a day. Partly because of its geographic location, Nicaragua is highly vulnerable to natural disasters, such as volcanic eruptions, hurricanes, earthquakes, droughts, fires, and floods. Such disasters have an adverse effect on the whole economy, but the poor are especially vulnerable to such events.
For many Nicaraguans, access to health services and quality education is very difficult. At least one quarter of the population does not have access to potable water. In some areas, urbanization is having serious environmental impacts because unregulated exploitation of resources has led to unsustainable practices, which undermine human and economic development. For example, cutting trees for firewood for urban centres has caused increased erosion and soil depletion in previously forested hillside areas.
Despite these challenges, the country has slowly been rebuilding its economy. Over the past 15 years, Nicaragua's economy saw sustained improvements in stabilization and growth. Reducing poverty in Nicaragua requires special attention to accelerating the growth of the rural economy because the majority of Nicaragua's poorest people live in the countryside.
