Nicaragua Economic Outlook
November 10, 2020The economy contracted 7.9% in Q2 according to recent data, despite the lack of a domestic lockdown. Exports plunged on lockdowns abroad and the collapse in international travel, while private consumption and fixed investment also fell sharply amid uncertainty generated by the pandemic. However, government consumption growth was solid. Turning to the third quarter, momentum appeared to recover somewhat, with the annual decline in economic activity much softer in July and August amid stronger showings from the manufacturing and mining subsectors. Moreover, remittances surged in the quarter, likely propping up private consumption. That said, the hotels and restaurants subsector remained extremely downbeat, likely as foreign visitors stayed away.
Nicaragua Economic GrowthThe economy is seen expanding meekly next year following a sharp downturn this year. Notwithstanding stronger external demand, momentum will be held back by the uncertain political situation. Downside risks stem from a potential resurgence in Covid-19 infections, limited fiscal room for maneuver and deteriorating international relations. FocusEconomics panelists see GDP expanding 1.1% in 2021, down 0.3 percentage points from last month’s forecast, before expanding 2.3% in 2022.
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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