Investment projections fall

Businessmen in Nicaragua expect to reduce by at least 50% the investments they had previously planned for 2018, waiting for the problems affecting the country to be solved.

Monday, October 1, 2018

The research by the Consejo Superior de la Empresa Privada (Cosep) and the Fundación Nicaragüense para el Desarrollo Económico y Social (Funides), takes place in the context of more than 160 days of political and social crisis, which has severely affected the performance of the country's economy.


See "The real impact of the crisis"

According to the study, investment expectations at the end of 2018 are not promising. For most export products and those for domestic consumption, the expected fulfillment of planned investments for this year is 50% or less. In tour operators, small hotels, distribution of motor vehicles, distribution of medical equipment and distribution of medicines and devices are expected to comply with less than 30% of the investment planned for this year.


The report concludes that the most affected economic activities are those related to tourism (small hotels, tour operators, large hotels, restaurants), distribution of motor vehicles, construction (developers, contractors and suppliers) and commerce and services; activities in which it is estimated that the percentage of sales achieved in July with respect to what was scheduled at the beginning of the year for this month were 60% or less.

Also see "Crisis wrecks tourism"

On the other hand, the contraction of the commercial sector is the result of the reduction of wholesale and retail commerce, as a consequence of the lower incomes that people have to consume due to the increase in unemployment and labor informality, as well as the insecurity in different cities of the country.

The report was written from the survey of 21 guilds covering 32 economic activities and 53 companies in key sectors, who provided information on production, logistics, employment, sales, exports and investments for July, as well as their prospects for the rest of the year.

See "Supervision of Nicaragua's economic activities" (In Spanish)



More on this topic

Companies Struggle Through the Crisis

June 2019

After 14 months of socio-political crisis in Nicaragua, companies in the country face a reduction in consumption and investment, as well as the impact on national economic activity of rising unemployment.

According to studies conducted by the Consejo Superior de la Empresa Privada (COSEP) and the Nicaraguan Foundation for Economic and Social Development (FUNIDES), the local economy faces a contraction in economic activity that continues to deepen, prevailing uncertainty and distrust in consumers and investors.

Million-dollar Losses for Tourism

February 2019

Because of the crisis affecting the country since April last year, it is estimated that during 2018 the losses of the Nicaraguan tourism sector totaled $440 million, and more than 62 thousand jobs disappeared.

The arrival of tourists to the country is another figure reporting a considerable decline last year, since between 2017 and 2018 the number of visitors who came to Nicaragua fell 55%, going from 1.7 million to 800 thousand.

Nicaragua: Sales Keep Falling

November 2018

In September, sales of houses in Nicaragua reported a fall of 80%, and sales of vehicles and hotels were reduced 75% and 70%, respectively, compared to the same month last year.

According to the Second Monitoring of Economic Activities in Nicaragua, prepared by the Superior Council of Private Enterprise (Cosep) and the Nicaraguan Foundation for Economic and Social Development (Funides), during September sales of advertising agencies fell 48%, those of distributors of medical equipment 40% and those of restaurants 35%, compared to the ninth month of 2017.

Nicaragua: Economy Suffers

May 2018

Due to the crisis in the country, the Central Bank has reduced the estimate of economic growth for this year from the range of 4.5% to 5%, to the range of 3% to 3.5%.

Ovidio Reyes, president of the Central Bank of Nicaragua (BCN), explained that " ...

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