For the 16 years between Ortega administrations (1991-2006), three successive Liberal Party administrations focused on free market reform as path to recovery from 12 years of economic free-fall under the Sandinista regime and civil war. During this 16-year period, characterized by steady GDP growth, the government made dramatic economic progress. It privatized more than 350 state enterprises, reduced inflation from 33,500% in 1988 to 9.45% in 2006, and cut the foreign debt by more than half. In 2006, the economy expanded by 3.7% as GDP reached $5.3 billion. | For the 16 years between Ortega administrations (1991-2006), three successive Liberal Party administrations focused on free market reform as path to recovery from 12 years of economic free-fall under the Sandinista regime and civil war. During this 16-year period, characterized by steady GDP growth, the government made dramatic economic progress. It privatized more than 350 state enterprises, reduced inflation from 33,500% in 1988 to 9.45% in 2006, and cut the foreign debt by more than half. In 2006, the economy expanded by 3.7% as GDP reached $5.3 billion. |