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 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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