Economic recession caused by the crisis

New World Bank projections estimate that because of Nicaragua's political crisis, the country's GDP will fall 4% this year and 1% in 2019.

Monday, October 8, 2018

According to the expectations of the international organization, Nicaragua will be the only economy that will decrease in Central America, because of the political and social crisis in which the country is involved since last April, it is expected that the Gross Domestic Product (GDP) will decrease 3.8% in 2018 compared to 2017.

"Central America and the Caribbean are expected to continue growing at a good pace (2.8 percent and 3.7 percent, respectively, with an increase in Central America that will be reduced by the political and economic crisis that is affecting Nicaragua)," explains the World Bank (WB) report.

See Crisis evolution.

On the other hand, Jorge Familiar, Vice President of the World Bank for Latin America and the Caribbean, said to that the Nicaraguan situation is "... Critical and in the current context it is considered that there are no prospects for new investments or approvals in the country due to the increasing uncertainty about the course of the nation."

Familiar added that "... The situation is alarming, which limits the WB's capacity to operate in the country."

Regarding the performance of economic activity, year-on-year reductions were reported in May and June, and in July the indicator continued to fall, reporting a 4% decrease with respect to the same month in 2017. See "Nicaragua: Economic Activity Still in the Red"

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