A small village in Nicaragua

Nicaragua Economic Forecast

Nicaragua Economic Outlook

Annual economic growth picked up to 3.5% in Q1, and monthly data points to another acceleration in Q2. Economic activity growth picked up to 3.9% on average in the quarter, buttressed by sturdier activity in agriculture and a sharp rebound in construction, likely thanks to the start of a Chinese-backed housing project in April. On the flip side, retail activity eased slightly, dented by weaker growth in remittances during the period. Moreover, merchandise exports swung into contraction. In other news, in late August, the country signed a free trade agreement with China. The accord is set to come into force in January 2024 and will enhance goods and services trade, as well as investment access. Additionally, the two countries agreed on an electronic transaction framework and digital economy cooperation.

Nicaragua Inflation

Inflation fell to 7.5% in August from 8.2% in July. The deceleration was chiefly driven by softer price pressures for food. Inflation will average lower this year than last due to the normalization of global supply chains and softer external price pressures. That said, it will remain elevated due to the government’s fuel policy and inefficient local distribution networks.

This chart displays Economic Growth (GDP, annual variation in %) for Nicaragua from 2013 to 2022.

Nicaragua Economic Data

2018 2019 2020 2021 2022
Population (million) 6.5 6.6 6.5 6.5 6.6
GDP (USD bn) 13.0 12.7 12.7 14.2 15.7
GDP per capita (USD) 2,002 1,932 1,950 2,168 2,373
GDP (NIO bn) 411 421 435 498 562
Economic Growth (Nominal GDP, ann. var. %) -0.8 2.3 3.5 14.3 13.0
Economic Growth (GDP, ann. var. %) -3.4 -2.9 -1.8 10.3 3.8
Private Consumption (ann. var. %) -4.6 -1.8 -0.4 8.7 5.9
Government Consumption (ann. var. %) -2.3 1.4 2.4 9.3 -6.0
Fixed Investment (ann. var. %) -22.0 -27.5 11.1 34.3 -4.2
Exports (G&S, ann. var. %) -1.6 6.1 -9.0 18.1 8.6
Imports (G&S, ann. var. %) -15.1 -3.8 0.1 21.1 5.0
Unemployment (% of active population, aop) 5.4 5.6 5.0 4.5 3.5
Fiscal Balance (% of GDP) -4.0 -1.7 -2.6 -1.5 0.6
Public Debt (% of GDP) 54.4 57.6 65.4 65.9 61.0
Money (ann. var. of M2 %) -19.7 3.2 16.1 11.9 6.6
Inflation (CPI, ann. var. %, eop) 3.9 6.1 2.9 7.2 11.6
Inflation (CPI, ann. var. %, aop) 4.9 5.4 3.7 4.9 10.5
Average Lending Rate (%, aop) 10.90 12.46 11.18 9.62 9.23
Exchange Rate (NIO per USD, eop) 32.49 33.70 34.92 35.41 36.50
Exchange Rate (NIO per USD, aop) 31.65 33.22 34.38 35.10 35.86
Current Account Balance (USD bn) -0.2 0.8 0.5 -0.4 -0.2
Current Account Balance (% of GDP) -1.8 6.0 3.6 -3.1 -1.4
Merchandise Trade Balance (USD bn) -1.6 -1.1 -0.9 -1.9 -2.8
Merchandise Exports (USD bn) 4.2 4.3 4.4 5.6 6.3
Merchandise Imports (USD bn) 5.8 5.4 5.3 7.5 9.1
Merchandise Exports (ann. var. %) 0.4 3.4 1.3 26.8 13.2
Merchandise Imports (ann. var. %) -11.4 -7.0 -1.1 40.0 21.8
Foreign Direct Investment (USD bn) 0.8 0.5 0.7 1.2 1.3
International Reserves (USD bn) 2.3 2.4 3.2 4.0 4.4
International Reserves (months of imports) 4.7 5.3 7.2 6.5 5.8
External Debt (USD bn) 13.0 13.2 13.6 14.4 -
External Debt (% of GDP) 100.1 104.2 107.3 101.3 -

Free Sample Report

Interested in Nicaragua economic reports, analysis and data? FocusEconomics provides data, forecasts and analysis for hundreds of countries and commodities. Request your free sample report now.

Close Left Media Arrows Left Media Circles Right Media Arrows Right Media Circles Arrow Quote Wave Address Email Telephone Man in front of screen with line chart Document with bar chart and magnifying glass Application window with bar chart Target with arrow Line Chart Stopwatch Globe with arrows Document with bar chart in front of screen Bar chart with magnifying glass and dollar sign Lightbulb Document with bookmark Laptop with download icon Calendar Icon Nav Menu Arrow Arrow Right Long Icon Arrow Right Icon Chevron Right Icon Chevron Left Icon Briefcase Icon Linkedin In Icon Full Linkedin Icon Filter Facebook Linkedin Twitter Pinterest