Nicaragua Economic Outlook
December 4, 2018The economic crisis has deepened in the second half of the year, as the ramifications of the political situation ripple through the economy. In September, economic activity retracted for the fifth consecutive month and the formal workforce shrank further. Moreover, instability has dragged on consumer and investor confidence, leading to capital flight and significant bank withdrawals. In response to the deteriorating macroeconomic picture, on 9 November S&P Global Ratings downgraded Nicaragua’s sovereign credit rating to B- with a negative outlook and flagged its weakening fiscal position, depleting international reserves and strained balance of payments as chief concerns. Meanwhile, the U.S. recently imposed financial sanctions on Vice President Rosario Murillo and a top aide for corruption and undermining democracy.
Nicaragua Economic GrowthThe ongoing political conflict will continue to derail economic growth into 2019, hampering tourism and investment. Remittance inflows, however, should remain the economy’s lifejacket. FocusEconomics panelists expect GDP to contract 0.2% in 2019, down 0.4 percentage points from last month’s estimate, and to grow 2.6% in 2020.
Nicaragua Economy Data
5 years of Nicaragua economic forecasts for more than 30 economic indicators.
Get a sample report showing all the data and analysis covered in our Regional, Country and Commodities reports.
|Exchange Rate||32.35||2.11 %||Dec 12|
Start Your Free Trial
Start working with the reports used by the world’s major financial institutions, multinational enterprises & government agencies now. Click on the button below to get started.