Nicaragua Economic Outlook
September 14, 2021GDP rocketed at the fastest year-on-year pace since our records began in the second quarter, gaining considerable steam from the prior quarter’s result (Q2: +16.7% yoy; Q1: +3.8% yoy). Although Q2’s reading was flattered by a low base effect, it pointed to strong momentum nonetheless: Capital and private spending growth accelerated in annual terms compared to Q1, signaling robust domestic activity. That said, government consumption grew at a more modest pace. Meanwhile, exports rebounded markedly, likely as a result of increased activity in the tourism sector, while imports surged at a record pace. Turning to this quarter, remittance inflows remained robust in July, which should be supporting consumer spending. Lastly, tensions have continued to build up ahead of November’s general elections, with further arrests of prominent opposition figures made in recent weeks.
Nicaragua Economic GrowthGDP is seen bouncing back to growth this year, supported by a tighter labor market and ample stimulus in the U.S., which should bolster remittances and help household spending recover. Risks to the outlook remain, however, due to the slow domestic vaccine rollout and heightened political tensions. FocusEconomics panelists see GDP expanding 3.5% in 2021, which is up 0.9 percentage points from last month’s forecast, and 2.2% 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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