Hotels and restaurants, Construction and Commerce, were the sectors that explained most of the -3.8% year-on-year variation in Gross Domestic Product last year.
Monday, April 1, 2019
In 2018, the dynamics of the Nicaraguan economy were affected by adverse events, with a change in the average growth path recorded in recent years. Thus, the results of the preliminary estimate of GDP indicate that the performance of economic activity in 2018 registered a 3.8% decrease, reported the Central Bank of Nicaragua (BCN).
The NCB report states that "... The preliminary result of the GDP by the production focus indicates that in 2018 a good performance was observed in the activities of fishing and aquaculture (14.7%), electricity (4.3%), water (3.6%), agriculture (3.3%), education (2.9%), health (2.7%), exploitation of mines and quarries (1.7%), and manufacturing industry (1.1%), mainly; that partially reduced the negative impact of the lower tax collection and of the decreases registered in the added value of activities such as hotels and restaurants (-20.2%), construction (-15.7%), commerce (-11.4%), livestock (-5.4%), financial intermediation (-5.4%), forestry and wood extraction (-4.2%) and transportation and communications (-3.5%), among others.
The agricultural activities were favored, mainly, by better climatic conditions, which contributed to reach greater cultural works in the cultivation of coffee, granza rice, soybean, sesame and tobacco mainly. This behavior was partially offset by activities such as the cultivation of corn, beans, peanuts and sugar cane, among others.
On the other hand, in the growth of the fishing and aquaculture activity contributed the increase in the production of cultivated shrimp and the greater capture of fish, shrimp and sea cucumber, mainly."
During the third quarter of the year, constant GDP totaled $10.731 million, 3% more than that reported for the same period in 2018.
Of the activities related to the domestic economy had a positive performance in this quarter, transport and communications, government services, electricity, trade, financial intermediation, private health and education, reported the General Comptroller of the Republic.
Because of the political crisis that began in Nicaragua in April, during the third quarter of last year the country's GDP fell by 4.5% compared to the same period in 2017.
The Central Bank of Nicaragua reported that in the third quarter of 2018, the economy registered a 4.8 percent year-on-year decline and a 0.5 percent annual average reduction.
During the third quarter of 2018, the constant Gross Domestic Product totaled $10.453 million, 3.6% more than that reported in the same period of 2017.
The activities related to the domestic economy this quarter were good: transport and communications, local wholesale and retail trade, financial intermediation, construction, real estate and business services, private education and health, and government services.
Because of the political crisis that Nicaragua has experienced since April, during the second quarter of the year the country's GDP decreased by 4.4% compared to the same period in 2017.
The Central Bank of Nicaragua reported that in the second quarter of 2018, the Nicaraguan economy recorded a year-on-year decline of 4.4 percent and an average annual growth of 1.6 percent in the original data, according to the preliminary estimate of quarterly GDP. With this result, economic activity fell 0.9 percent in the first half.