Figures from the Crisis

After the political and social crisis that began in April, the Nicaraguan economy will lose more than $1.3 billion this year, and GDP could decline by 4%, together with the collateral effects suffered by the countries of the region.

Thursday, December 13, 2018

Several indicators have reflected the weak performance of the country's economy since the crisis began. One of them is the IMAE, as the Central Bank of Nicaragua reported that following the trend that has been observed since May, in September the index reported a 4.3% decrease compared to the same month in 2017.

The number of formal workers in the country has also registered a negative trend, since from March to October of this year the number of employees subscribed to Social Security fell 16%, from 897,000 to 754,000.

See "Nicaragua: Decline in Formal Employment Gets Steeper"

The president of the Consejo Superior de la Empresa Privada (Cosep), José Adán Aguerri, explained to Elnuevodiario.com that "... the socio-political crisis in Nicaragua's economy is a great uncertainty and distrust, which is resulting in a great reduction in economic growth that could be -4% in 2018. Adding the four percentage point drop in GDP to the 4.5 percentage points it was set to grow this year (according to official forecasts), the result is a decline of almost 9 percentage points in Nicaragua's economic growth."

Aguerri added that "... some economic sectors of the country lost in seven months which cost them seven years to build. That means that for every month of (socio-political) crisis there is a lost year or a lost half-year, depending on the sector."

The crisis not only affected the local economy, since the Central American region reported losses from difficulties in moving goods along Nicaragua's highways, because of demonstrators' blockades and insecurity.

Also see "Regional Cargo Transport Stranded in Nicaragua"

In October, it was reported that the complicated economic and political situation affecting Nicaragua since April remains in Central America, where exporters already reported millions in losses.

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More on this topic

Home Sales: Unsatisfying Forecasts

June 2019

Businessmen in Nicaragua estimate that this year the sales of houses will not exceed one thousand units throughout the country, which is explained by the economic situation that the country has been living for fourteen months now.

Although in April 2018 the political and social crisis broke out in the country, builders managed to sell 3,108 homes last year, but the figure was 34% lower than the 4,738 homes sold in 2017.

Nicaragua: Economy Could Fall by up to 11%

February 2019

If the country does not provide an early solution to the socio-political crisis it has been going through since April 2018, it is projected that the economy could decline between 7% and 11% during 2019.

The Nicaraguan Foundation for Economic and Social Development (Funides), presented the "Informe de Coyuntura" (Situation Report), which explains that if the socio-political crisis continues this year there will be a greater fall in the economy compared to the 4% reported in 2018.

Crisis Affects El Salvador - Nicaragua Trade

August 2018

It has been estimated that since the crisis began in Nicaragua, losses in trade between Nicaraguan and Salvadoran companies amount to $12 million.

The cheese and milk trade is the area that has been most affected by the socio-political crisis occurring in Nicaragua. According to representatives from the Ministry of Economy of El Salvador, losses in bilateral trade not only of cheese and milk, but also of other goods, amount to $12 million.

Employment: Easier to Destroy Than to Create

August 2018

From January 2016 to December 2017, 88,932 new workers signed up to the social security scheme in Nicaragua, but since the crisis began in April, more than 86,000 formal jobs have been lost.

The number of formal jobs that the Nicaraguan economy took two years to generate, disappeared in the first three months of the political and social crisis that began on April 18.  

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