Nicaragua Economic Outlook
February 18, 2020Economic conditions appear to have ameliorated toward the end of 2019, although political tensions and uncertainty weighed heavily on the economy throughout most of the year. International reserves recovered throughout Q4, hinting at an improving financial situation in the country. Furthermore, the ongoing political crisis showed some signs of moderation, boding well for the economy; U.S.-imposed sanctions, international condemnation and the threat of expulsion from the Organization of American States—an important source of funding for the country—put pressure on the government. In other news, on 14 February Moody’s downgraded its B2 rating for Nicaragua to B3 with a stable outlook, citing a weakening of economic activity and a heightened risk of reduced access to crucial external credit.
Nicaragua Economic GrowthThe economy is expected to shrink again in 2020, although the contraction should be less than in the year prior due to slower declines in private consumption and fixed investment. However, the uncertain domestic panorama creates significant headwinds to economic recovery. FocusEconomics panelists project GDP to contract 1.0% in 2020, which is unchanged from last month’s projection, and to expand 0.8% in 2021.
Nicaragua Economy Data
5 years of Nicaragua economic forecasts for more than 30 economic indicators.
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|Exchange Rate||33.47||2.11 %||Jan 01|
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