Managua is the capital of Nicaragua.
Managua is the capital city of Nicaragua. It is also the largest city in Nicaragua. The city has a population of roughly 1,800,000, composed predominantly of mestizos and whites; making it the second most populous city in Central America after Guatemala City. Managua's location between the rival cities of León and Granada made it a logical and ideal compromise site in determining the nation's capital. Managua's economy is based mainly on trade. The city is Nicaragua's chief trading center for coffee, cotton, and other crops. It is also an important industrial center. Its chief products for trade include beer, coffee, matches, textiles, and shoes. The city has been witness to the rise and fall of political powers throughout Nicaragua's history and suffered devastating earthquakes in 1931 and 1972. Managua is the economic, political, cultural, commercial and industrial center of Nicaragua. Since the 1972 earthquake, residential and business areas have been built on the outskirts of Managua. Residents of the city and of the department of Managua are called Managuas