Business: Making Blind Decisions

Because of the tension between the productive sector and the government, coupled with the lack of official statistics from the Central Bank, some companies in Nicaragua have chosen to stop providing information to the authorities.

Wednesday, December 18, 2019

In an attempt to hide the complicated economic situation, the country is going through, local authorities have not published information on the Monthly Economic Activity Index since February 2019, when the year-on-year drop was 7.5%. This prevents businessmen from making decisions based on the real situation of the economy.

See "No Information to Make Decisions"

The lack of official information has meant that the reports on the economic situation prepared by the Superior Council of Private Enterprise (Cosep) and the Nicaraguan Foundation for Economic and Social Development (Funides) lack current information.

Mario Arana, general manager of the Nicaraguan Association of Producers and Exporters (APEN), told Laprensa.com that the decision not to give more information to the Central Bank of Nicaragua was possibly because of "... the current tension between the government and the private sector, as companies feel mistreated and therefore do not feel obliged to give information to the Central Bank."

Arana added that strangely enough, he was asked as APEN's general manager to provide information on its financial statements, something he had never been asked for before, which he interprets as a message of intimidation.



More on this topic

No Information to Make Decisions

November 2019

In Nicaragua, the authorities have not published information on the Monthly Index of Economic Activity since February 2019, when the year-on-year fall was 7.5%, a situation that prevents businessmen from making decisions based on the real situation of the economy.

The latest report published by the Central Bank of Nicaragua states that in the second month of 2019 the IMAE in the country registered a 7.5% decrease compared to February 2018, mainly because of the behavior of the Hotels and Restaurants, and Fisheries and Aquaculture sectors.

Economic Growth Is Not Accelerating

October 2019

In the second quarter of the year, Costa Rica's GDP grew 1.4% year-on-year, below the 3% reported for the same period in 2018, which is associated with the evolution of internal demand and external demand for the production of companies under the definitive regime.

In the second quarter of 2019, the country's economic activity, as measured by the trend of the Gross Domestic Product (GDP) cycle, grew 1.4%, continuing the loss of dynamism observed since the second quarter of 2018, reported the Central Bank of Costa Rica (BCCR).

Economic Activity Does Not Rebound

July 2019

In Costa Rica, the Monthly Economic Activity Index reported a 1.3% year-on-year increase in May, one of the lowest growth rates reported in recent years, since a similar variation had not been registered since November 2013.

The trend series of the Monthly Index of Economic Activity 1 registered in May 2019 a 1.3% year-on-year growth, which is lower by 2 percentage points (p.p.) to the same month of the previous year and by 0.2 p.p. to the previous month, informed the Central Bank of Costa Rica (BCCR).

Strike's Real Impact

November 2018

In September, economic activity in Costa Rica barely grew 2.5%, 0.3% over the previous month, mainly because of the effects of the activity stoppage caused by public employee unions.

The Central Bank of Costa Rica reported that the country's production, measured by the trend cycle series of the Monthly Economic Activity Index (IMAE), presented in September 2018 a year-on-year growth of 2.5%, which is 0.3 percentage points (p.p.) lower than the year-on-year growth of the previous month and 0.6 p.p. to September 2017.

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