Doing Business 2017: Nicaragua Summary
Core Content
Doing Business 2017 is a World Bank Group report that evaluates the ease of doing business across 190 economies, focusing on regulatory reforms and their impact on business environments. It measures 11 key areas in the business life cycle, including starting a business, dealing with construction permits, getting electricity, registering property, getting credit, protecting minority investors, paying taxes, trading across borders, enforcing contracts, resolving insolvency, and labor market regulation.
For Nicaragua, the report provides detailed data on these indicators, comparing it with other selected economies (comparator economies) and presenting both the ease of doing business ranking and the distance to frontier (DTF) score.
Key Information
Economy Overview
- Region: Latin America & Caribbean
- Income Category: Lower middle income
- Population: 6,082,032
- GNI per capita (US$): 1,940
- DB2017 Rank: 127
- DB2016 Rank: 124
- Change in Rank: -3
- DB2017 DTF Score: 55.75
- DB2016 DTF Score: 55.65
- Change in DTF: +0.1
Methodology and Changes in 2017
-
New Features:
- Added postfiling processes to the paying taxes indicator.
- Introduced a gender component in three indicators: starting a business, registering property, and enforcing contracts.
- Developed a new pilot indicator on selling to the government.
- Included Somalia for the first time, bringing the total number of economies to 190.
-
Limitations:
- The report does not include labor market regulation in the aggregate ease of doing business ranking or DTF score.
- It focuses on a local limited liability company in the largest business city.
- It does not cover all aspects of the business environment, such as market proximity, infrastructure quality, or macroeconomic conditions.
Main Indicators for Nicaragua (2017)
| Indicator |
Nicaragua DB2017 |
Nicaragua DB2016 |
Colombia DB2017 |
Costa Rica DB2017 |
El Salvador DB2017 |
Honduras DB2017 |
Mexico DB2017 |
Panama DB2017 |
Best Performer |
| Starting a Business |
128 |
120 |
61 |
125 |
129 |
148 |
93 |
43 |
New Zealand (1) |
| DTF Score |
81.00 |
80.49 |
89.57 |
81.57 |
80.70 |
77.02 |
85.74 |
92.01 |
New Zealand (99.96) |
| Procedure – Men (number) |
6.0 |
6.0 |
6.0 |
9.0 |
8.0 |
11.0 |
7.8 |
5.0 |
1.0 (4 Economies) |
| Time – Men (days) |
13.0 |
13.0 |
9.0 |
22.5 |
15.5 |
13.0 |
8.4 |
6.0 |
0.5 (New Zealand) |
| Cost – Men (% of income per capita) |
68.0 |
72.2 |
7.5 |
9.1 |
40.7 |
41.1 |
17.8 |
5.8 |
0.0 (Slovenia) |
| Procedure – Women (number) |
6.0 |
6.0 |
6.0 |
9.0 |
8.0 |
11.0 |
7.8 |
5.0 |
1.0 (4 Economies) |
| Time – Women (days) |
13.0 |
13.0 |
9.0 |
22.5 |
15.5 |
13.0 |
8.4 |
6.0 |
0.5 (New Zealand) |
| Cost – Women (% of income per capita) |
68.0 |
72.2 |
7.5 |
9.1 |
40.7 |
41.1 |
17.8 |
5.8 |
0.0 (Slovenia) |
| Paid-in Minimum Capital (% of income per capita) |
0.0 |
0.0 |
0.0 |
0.0 |
2.5 |
0.0 |
0.0 |
0.0 |
0.0 (127 Economies) |
Dealing with Construction Permits
| Indicator |
Nicaragua DB2017 |
Nicaragua DB2016 |
Colombia DB2017 |
Costa Rica DB2017 |
El Salvador DB2017 |
Honduras DB2017 |
Mexico DB2017 |
Panama DB2017 |
Best Performer |
| Rank |
168 |
167 |
34 |
53 |
156 |
84 |
83 |
73 |
New Zealand (1) |
| DTF Score |
52.97 |
52.69 |
76.54 |
74.63 |
56.29 |
69.57 |
69.79 |
71.31 |
New Zealand (87.40) |
| Procedures (number) |
16.0 |
16.0 |
10.0 |
15.0 |
24.0 |
15.0 |
13.0 |
16.0 |
7.0 (15 Economies) |
| Time (days) |
207.0 |
207.0 |
73.0 |
118.0 |
111.0 |
89.0 |
86.4 |
98.0 |
28.0 (Korea, Rep.) |
| Cost (% of warehouse value) |
3.1 |
3.3 |
6.7 |
1.7 |
4.2 |
6.0 |
9.8 |
2.0 |
0.1 (Trinidad and Tobago) |
| Building Quality Control Index (0-15) |
3.5 |
3.5 |
11.0 |
11.0 |
7.0 |
10.0 |
11.7 |
9.0 |
15.0 (Luxembourg) |
Getting Electricity
| Indicator |
Nicaragua DB2017 |
Nicaragua DB2016 |
Colombia DB2017 |
Costa Rica DB2017 |
El Salvador DB2017 |
Honduras DB2017 |
Mexico DB2017 |
Panama DB2017 |
Best Performer |
| Rank |
99 |
94 |
74 |
27 |
109 |
144 |
98 |
23 |
Korea, Rep. (1) |
| DTF Score |
68.19 |
68.02 |
73.73 |
85.04 |
63.75 |
53.66 |
68.32 |
86.67 |
Korea, Rep. (99.88) |
| Procedures (number) |
6.0 |
6.0 |
5.0 |
5.0 |
8.0 |
7.0 |
6.8 |
5.0 |
3.0 (15 Economies) |
| Time (days) |
55.0 |
55.0 |
109.0 |
45.0 |
59.0 |
39.0 |
100.4 |
35.0 |
1.0 (3 Economies) |
| Cost (% of income per capita) |
904.2 |
958.6 |
581.4 |
182.3 |
513.0 |
775.1 |
336.7 |
8.9 |
0.0 (Japan) |
| Reliability of supply and transparency of tariff index (0-8) |
4.0 |
4.0 |
6.0 |
7.0 |
5.0 |
0.0 |
6.2 |
7.0 |
8.0 (26 Economies) |
Registering Property
| Indicator |
Nicaragua DB2017 |
Nicaragua DB2016 |
Colombia DB2017 |
Costa Rica DB2017 |
El Salvador DB2017 |
Honduras DB2017 |
Mexico DB2017 |
Panama DB2017 |
Best Performer |
| Rank |
146 |
147 |
53 |
52 |
71 |
85 |
101 |
84 |
New Zealand (1) |
| DTF Score |
48.86 |
48.85 |
73.29 |
73.39 |
67.09 |
64.26 |
61.05 |
65.17 |
New Zealand (94.46) |
| Procedures (number) |
9.0 |
9.0 |
6.0 |
5.0 |
5.0 |
6.0 |
7.7 |
7.0 |
1.0 (4 Economies) |
| Time (days) |
56.0 |
56.0 |
16.0 |
19.0 |
31.0 |
22.0 |
42.1 |
22.5 |
1.0 (3 Economies) |
| Cost (% of property value) |
5.0 |
5.0 |
2.0 |
3.4 |
3.8 |
5.7 |
5.2 |
2.4 |
0.0 (Saudi Arabia) |
| Quality of land administration index (0-30) |
6.5 |
6.5 |
16.5 |
17.5 |
12.5 |
14.0 |
16.3 |
11.0 |
Singapore (29.0) |
Getting Credit
| Indicator |
Nicaragua DB2017 |
Nicaragua DB2016 |
Colombia DB2017 |
Costa Rica DB2017 |
El Salvador DB2017 |
Honduras DB2017 |
Mexico DB2017 |
Panama DB2017 |
Best Performer |
| Rank |
101 |
97 |
2 |
7 |
44 |
7 |
5 |
20 |
New Zealand (1) |
| DTF Score |
45.00 |
45.00 |
95.00 |
85.00 |
65.00 |
85.00 |
90.00 |
75.00 |
New Zealand (100.00) |
| Strength of legal rights index (0-12) |
1.0 |
1.0 |
12.0 |
10.0 |
9.0 |
9.0 |
10.0 |
7.0 |
New Zealand (8.3) |
| Depth of credit information index (0-8) |
8.0 |
8.0 |
7.0 |
7.0 |
4.0 |
8.0 |
8.0 |
8.0 |
30 Economies (8.0) |
| Credit Registry Coverage (% of adults) |
17.9 |
16.3 |
0.0 |
30.5 |
28.7 |
22.8 |
0.0 |
0.0 |
3 Economies (100.0) |
| Credit Bureau Coverage (% of adults) |
53.9 |
48.7 |
92.1 |
100.0 |
3.0 |
60.5 |
100.0 |
58.1 |
23 Economies (100.0) |
Protecting Minority Investors
| Indicator |
Nicaragua DB2017 |
Nicaragua DB2016 |
Colombia DB2017 |
Costa Rica DB2017 |
El Salvador DB2017 |
Honduras DB2017 |
Mexico DB2017 |
Panama DB2017 |
Best Performer |
| Rank |
145 |
145 |
13 |
165 |
158 |
132 |
53 |
70 |
New Zealand (1) |
| DTF Score |
40.00 |
40.00 |
73.33 |
35.00 |
38.33 |
43.33 |
60.00 |
56.67 |
New Zealand (83.33) |
| Strength of minority investor protection index (0-10) |
4.0 |
4.0 |
7.3 |
3.5 |
3.8 |
4.3 |
6.0 |
5.7 |
New Zealand (8.3) |
| Extent of conflict of interest regulation index (0-10) |
4.0 |
4.0 |
8.0 |
3.3 |
3.3 |
5.7 |
6.0 |
5.3 |
New Zealand (9.3) |
| Extent of shareholder governance index (0-10) |
4.0 |
4.0 |
6.7 |
3.7 |
4.3 |
3.0 |
6.0 |
6.0 |
Norway (8.3) |
Paying Taxes
| Indicator |
Nicaragua DB2017 |
Nicaragua DB2016 |
Colombia DB2017 |
Costa Rica DB2017 |
El Salvador DB2017 |
Honduras DB2017 |
Mexico DB2017 |
Panama DB2017 |
Best Performer |
| Rank |
176 |
175 |
139 |
62 |
166 |
152 |
114 |
170 |
United Arab Emirates (1) |
| DTF Score |
43.29 |
42.97 |
58.91 |
78.98 |
49.51 |
54.97 |
65.81 |
48.09 |
United Arab Emirates (99.44) |
| Payments (number per year) |
42.0 |
43.0 |
12.0 |
10.0 |
41.0 |
48.0 |
6.0 |
52.0 |
Hong Kong SAR, China (3.0) |
| Time (hours per year) |
201.0 |
207.0 |
239.0 |
151.0 |
248.0 |
224.0 |
286.0 |
417.0 |
Luxembourg (55.0) |
| Total Tax Rate (% of profit) |
60.8 |
60.1 |
69.8 |
58.3 |
38.8 |
44.4 |
52.0 |
37.2 |
32 Economies (26.1) |
| Postfiling Index (0-100) |
13.6 |
- |
47.5 |
91.1 |
10.1 |
48.1 |
- |
46.6 |
Estonia (98.5) |
Trading Across Borders
| Indicator |
Nicaragua DB2017 |
Nicaragua DB2016 |
Colombia DB2017 |
Costa Rica DB2017 |
El Salvador DB2017 |
Honduras DB2017 |
Mexico DB2017 |
Panama DB2017 |
Best Performer |
| Rank |
73 |
65 |
121 |
71 |
44 |
109 |
61 |
53 |
10 Economies (1) |
| DTF Score |
78.99 |
80.55 |
62.83 |
79.32 |
88.49 |
65.85 |
82.09 |
85.47 |
10 Economies (100.00) |
| Time to Export: Border Compliance (hours) |
60 |
60 |
112 |
20 |
38 |
88 |
20 |
24 |
18 Economies (0) |
| Cost to Export: Border Compliance (USD) |
150 |
80 |
545 |
375 |
128 |
601 |
400 |
270 |
18 Economies (0) |
| Time to Export: Documentary Compliance (hours) |
48 |
48 |
60 |
24 |
9 |
48 |
8 |
6 |
25 Economies (1) |
| Cost to Export: Documentary Compliance (USD) |
47 |
47 |
90 |
80 |
50 |
80 |
60 |
60 |
19 Economies (0) |
| Time to Import: Border Compliance (hours) |
72 |
72 |
112 |
80 |
40 |
96 |
44 |
24 |
25 Economies (0) |
| Cost to Import: Border Compliance (USD) |
400 |
330 |
545 |
420 |
128 |
483 |
450 |
490 |
28 Economies (0) |
| Time to Import: Documentary Compliance (hours) |
16 |
16 |
64 |
26 |
13 |
72 |
18 |
6 |
29 Economies (1) |
| Cost to Import: Documentary Compliance (USD) |
86 |
86 |
50 |
75 |
67 |
70 |
100 |
50 |
30 Economies (0) |
Enforcing Contracts
| Indicator |
Nicaragua DB2017 |
Nicaragua DB2016 |
Colombia DB2017 |
Costa Rica DB2017 |
El Salvador DB2017 |
Honduras DB2017 |
Mexico DB2017 |
Panama DB2017 |
Best Performer |
| Rank |
83 |
89 |
174 |
125 |
104 |
151 |
40 |
145 |
Korea, Rep. (1) |
| DTF Score |
58.58 |
57.79 |
34.29 |
52.41 |
55.20 |
45.54 |
67.01 |
48.10 |
Korea, Rep. (84.15) |
| Time (days) |
490.0 |
519.0 |
1288.0 |
852.0 |
786.0 |
920.0 |
340.7 |
686.0 |
Singapore (164.0) |
| Cost (% of claim) |
26.8 |
26.8 |
45.8 |
24.3 |
19.2 |
35.2 |
33.0 |
38.0 |
Iceland (9.0) |
| Quality of Judicial Processes Index (0-18) |
6.5 |
6.5 |
9.0 |
8.0 |
7.5 |
7.5 |
10.1 |
6.0 |
Australia (15.5) |
Resolving Insolvency
| Indicator |
Nicaragua DB2017 |
Nicaragua DB2016 |
Colombia DB2017 |
Costa Rica DB2017 |
El Salvador DB2017 |
Honduras DB2017 |
Mexico DB2017 |
Panama DB2017 |
Best Performer |
| Rank |
103 |
103 |
33 |
107 |
80 |
139 |
30 |
133 |
Finland (1) |
| DTF Score |
40.66 |
40.13 |
71.74 |
39.62 |
45.83 |
31.66 |
73.11 |
33.36 |
Finland (93.89) |
| Recovery Rate (cents on the dollar) |
34.9 |
33.9 |
69.4 |
27.2 |
32.9 |
18.2 |
69.1 |
27.2 |
Norway (92.9) |
| Time (years) |
2.2 |
2.2 |
1.7 |
3.0 |
3.5 |
3.8 |
1.8 |
2.5 |
22 Economies (0.4) |
| Cost (% of estate) |
14.5 |
14.5 |
8.5 |
14.5 |
12.0 |
14.5 |
18.0 |
25.0 |
22 Economies (1.0) |
| Strength of Insolvency Framework Index (0-16) |
7.0 |
7.0 |
11.0 |
8.0 |
9.0 |
7.0 |
11.5 |
6.0 |
6 Economies (15.0) |
Main Points
- The ease of doing business ranking and distance to frontier score are key metrics used to evaluate the business environment.
- Nicaragua ranked 127th in the 2017 ranking, slightly dropping from 124th in 2016.
- The DTF score for Nicaragua is 55.75, showing a marginal improvement of +0.1 from 2016.
- The report includes gender dimensions in some indicators, highlighting the differences in procedures, time, and cost between male and female entrepreneurs.
- Paying taxes remains one of the most challenging areas for Nicaragua, with a rank of 176 and a DTF score of 43.29.
- Getting electricity and registering property are other key areas where Nicaragua faces significant challenges.
- Protecting minority investors is also a major concern, with Nicaragua ranked 145th and a DTF score of 40.00.
- Enforcing contracts and resolving insolvency are areas where Nicaragua has room for improvement, with a DTF score of 58.58 and 40.66, respectively.
- The report provides comparative data with other countries in the region and globally, aiding in identifying performance gaps and opportunities for reform.