Nicaragua: Positive Economic Outlook?

After having recorded a 4% fall in GDP in 2018, the Central Bank authorities forecast that the Nicaraguan economy will begin to recover in the 2020-2021 period.

Thursday, October 10, 2019

Hotels and restaurants, Construction and Commerce, were the sectors that explained most of the -3.8% year-on-year variation of the Gross Domestic Product (GDP) during 2018, according to reports from the Central Bank.

In this context government representatives are optimistic, because according to Ovidio Reyes, president of the Central Bank of Nicaragua (BCN), there is improvement in several indicators in the Nicaraguan economy. The official highlights the "permanent growth of the agriculture, livestock, fishing, forestry, and mining sectors. There are also positive movements in tourism and hotels. In addition, the positive result in the trade sector in recent months."

See "One year in crisis"

The BCN statement notes that Reyes emphasizes that "... since July the deposits of the Financial System are improving, with much liquidity and better conditions for the credit to be reactivated, which will facilitate the economy to return to normal. It should be noted that liquidity has increased by 48% via credit recovery, and banks managed to cancel debts to the Central Bank and also abroad."

The document adds that "... The President of the NCB also referred to the entry of dollars into the country, which represents a strength in the economy, and indicated that they expect $5.4 billion dollars in exports, $1.6 billion dollars in remittances, $500 million dollars for tourism, $600 million in foreign investment and $300 million in other goods and services, plus cooperation flows between $400 and $500 million dollars, for a total of almost $7,500,8 billion dollars.

Regarding the prospects for recovery, President Reyes said that he has agreed with the Monetary Fund, Risk Rating Agencies, ECLAC and other entities, that in the 2020-2021 period, will begin a recovery. He concluded that I have not seen any scenario that shows a resounding fall or a continuation of it

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

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