Nicaragua Economic Forecast

Nicaragua Economic Outlook

February 18, 2020

Economic 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 Growth

The 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

2014 2015 2016 2017 2018
Population (million)6.06.36.36.46.5
GDP per capita (USD)1,9792,0442,1022,1582,028
GDP (USD bn)11.912.813.313.813.1
Economic Growth (GDP, annual variation in %)4.84.84.64.7-3.8
Consumption (annual variation in %)4.25.25.75.8-4.8
Investment (annual variation in %)-0.427.7-0.3-5.1-23.6
Unemployment Rate-  -  -  -  -  
Fiscal Balance (% of GDP)-1.5-1.6-2.0-2.0-4.0
Money (annual variation in %)13.019.110.513.0-19.7
Inflation Rate (CPI, annual variation in %, eop)6.53.13.15.73.9
Inflation Rate (CPI, annual variation in %)6.04.03.53.94.9
Benchmark Interest Rate (%)13.5412.0311.4410.8510.90
Exchange Rate (vs USD)26.6027.9029.3030.8032.33
Exchange Rate (vs USD, aop)25.7226.5928.2629.7631.58
Current Account (% of GDP)-7.1-8.8-6.5-4.90.6
Current Account Balance (USD bn)-0.8-1.1-0.9-0.70.1
Trade Balance (USD billion)-3.2-3.5-3.7-3.5-2.7
Exports (USD billion)2.72.42.22.52.5
Imports (USD billion)5.95.95.96.15.2
Exports (annual variation in %)9.6-9.3-8.114.5-1.2
Imports (annual variation in %)3.90.5-0.33.5-14.7
International Reserves (USD)2.32.52.42.82.3
External Debt (% of GDP)84.782.182.683.188.7

Sample Report

5 years of Nicaragua economic forecasts for more than 30 economic indicators.

Download

Sample Report

Get a sample report showing our regional, country and commodities data and analysis.

Download

Nicaragua Facts

Value Change Date
Exchange Rate33.472.11 %Jan 01

Request a 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.

Sign Up

Search form