Nicaragua: Consumption Outlook

Once the economy begins to return to normal, as the phases of the pandemic are overcome in the country, it is estimated that the demand for meals outside the home will have decreased by 13%.

Tuesday, April 21, 2020

Using a demand/income sensitivity model developed by CentralAmericaData's Trade Intelligence Unit, variations in demand by Nicaraguan households for different goods and services can be projected as the most critical phases of the spread of covid-19 are overcome and restrictive measures are lifted in the country.

For this analysis, it is assumed that the quarantine and mobility restriction measures will be extended for two months.

For example, the demand for food in general will decrease by about 3% from the levels reported prior to the crisis. When the expected demand for fish, specifically fillet, is analyzed, it is estimated that once the quarantine period is over, households in Nicaragua will reduce their expenditures on this item by about 2%.

When commercial activity begins to normalize, it is estimated that demand for lotions and perfumes will contract by 4%, compared to pre-crisis sales levels in covid-19. In the case of body, face and facial creams, consumption will fall by about 3%.

In the case of the clothing market, demand for men's and women's jeans is expected to fall by about 3%.

The "Information System: Covid-19 and Business Outlook", is helping our clients understand and dimension the degree of impact that the crisis will have on the demand for goods and services of companies in all sectors, with details such as the financial strength of customers and suppliers of each economic activity, which allows to predict which of them could face more difficulties in the coming months.

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