The harsh economic reality of Nicaragua: insufficient salaries and widespread precarity

The economic reality facing thousands of Nicaraguans today is bleak. Despite the increase in the minimum wage decreed by the government of Daniel Ortega, which set the monthly income at 8,746.46 córdobas (equivalent to about 239 dollars at the official exchange rate), the majority of the population is in a situation of extreme precarity. A clear reflection of this crisis is that 86.8% of Nicaraguans cannot afford the basic basket, according to a report by Hagamos Democracia. The story of Lydia, a worker at a maquiladora in Managua, illustrates the daily struggle of many families to make ends meet. Despite her salary increase, it remains insufficient to cover basic expenses, especially when it comes to food. Lydia recounts how she is forced to juggle to feed her two children, resorting to affordable foods such as rice, beans, and instant soups, and sacrificing more expensive products. The report by Hagamos Democracia reveals that 87.3% of those surveyed in Nicaragua expressed that their incomes do not allow them to cover all their monthly expenses, highlighting the serious economic crisis the country is facing. The cost of the basic basket has soared in recent years, reaching 20,560 córdobas in May 2024, posing a real challenge for Nicaraguan families. The disparity between the rising food prices and the declining purchasing power of the population, as evidenced by the Hagamos Democracia study, highlights the serious economic situation facing Nicaragua. While food prices have increased between 26% and 146% over the past six years, real wages have decreased by over 20%, leading to an unsustainable situation for many families. Furthermore, the labor precarity in the country is alarming, with a significant increase in self-employment and a decrease in formal employment. This situation has direct consequences on people's ability to cover their expenses and access social security. The rise in informal work reflects the government's inability to create stable and quality employment. Family remittances have become a fundamental pillar for the Nicaraguan economy, being essential for the survival of many families. However, this dependence on remittances highlights the economic precarity in which numerous households in the country find themselves. Experts point out that remittances are no longer used for discretionary spending but are indispensable for covering basic expenses such as food and housing. After six years of socio-political crisis, the Nicaraguan population continues to face a bleak outlook, with a high percentage of people expressing a desire to migrate if given the opportunity. Political persecution and economic precarity have led more than a million Nicaraguans to flee the country in search of better living conditions. The lack of job opportunities and the economic crisis have pushed many Nicaraguans to the brink, seeing migration as a possible solution to their problems.