Nicaragua Economic Outlook
February 13, 2018The economy lost puff in the third quarter according to recent data, following a strong start to 2017. Growth was 3.2% year-on-year, dampened by a fall in exports of key agricultural products and transport services. On the other hand, public and private consumption were fairly robust. Signs for Q4 are positive; in November, year-on-year economic activity growth picked up, while remittances surged from a year ago, likely thanks to a dynamic U.S. labor market. At the end of January, the government announced measures to rationalize electricity subsidies and reduce VAT exemptions. However, in a recent staff visit the IMF urged Nicaragua to go further in strengthening the fiscal position, in particular by putting the Social Security Institute on a sustainable long-term financial footing.
Nicaragua Economic GrowthGrowth should be brisk this year, thanks to strong public infrastructure investment and private consumption growth. Risks are mainly tilted to the downside due to financial problems at the Social Security Institute, lower financing from Venezuela and the possible passage of the NICA Act in the U.S. Analysts expect GDP to grow 4.5% in 2018, unchanged from last month’s forecast, and 4.4% in 2019.
Nicaragua Economy Data
5 years of Nicaragua economic forecasts for more than 30 economic indicators.
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|Exchange Rate||31.00||2.11 %||Feb 20|
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