Nicaragua Economic Outlook
August 6, 2019
The economy likely continued to contract sharply in the first half of the year as businesses—particularly in the construction, tourism and retail sectors—continue to suffer from the uncertain environment created by the political crisis. International reserves have dropped notably in annual terms in H1, reflecting the increased economic instability, while freefalling merchandise imports shows dampened domestic demand. On a brighter note, remittance inflows rose at a strong rate in Q2, while the current account balance swung from deficit to surplus in Q1, largely due to the narrower trade deficit. In politics, in late July the opposition party claimed the Ortega administration “killed” negotiations by not sending representatives to a meeting which was supposed to mark the restarting of talks. This underlines just how little progress has been made towards reaching a final resolution.Nicaragua Economic Growth
Nicaragua is forecast to remain deep in recession in 2019. The protracted political conflict will continue to weigh heavily on economic activity and employment, while also stalling much-needed economic reforms, draining public coffers and stoking uncertainty. The unresolved crisis remains the principal risk to the outlook. FocusEconomics panelists expect GDP to contract 4.8% in 2019, which is up 0.3 percentage points from last month’s estimate, and to contract 0.9% in 2020.Nicaragua Economy Data
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Nicaragua Facts
| Value | Change | Date | |
|---|---|---|---|
| Exchange Rate | 33.05 | 2.11 % | Jul 31 |
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