With the Pacific Ocean on the west and the Caribbean Sea to the east, Nicaragua is the second largest country in Middle America. The eastern coastal plains rise to central interior mountains, and the narrow Pacific coastal plain is interrupted by volcanoes. The climate is tropical in the lowlands and cooler in the highlands.
The Nicaraguan population is more urban than rural, and mostly of European and Indian ancestry. Spanish is the official language, but on the Caribbean coast indigenous languages are also spoken.
In 1524, Hernandez de Cordoba founded the first permanent Spanish settlements in the region. Nicaragua gained independence from Spain in 1821, briefly becoming a part of the Mexican Empire. In 1838, Nicaragua became an independent republic. The country began free-market reforms in 1991, after 12 years of economic free-fall under the Sandinista regime. Despite some initial setbacks, it has made dramatic progress. Nicaragua is primarily an agricultural country, but construction, mining, fisheries, exports, and general commerce have added to its stability and the well-being of its people.