Venezuela and Nicaraguan Growth

At least 20% of Nicaragua's economic growth in recent years is the result of economic and commercial support from Venezuela.

Tuesday, May 8, 2012

A study by the Nicaraguan Foundation for Economic and Social Development (FUNIDES) shows that in 2010, when the economy was growing at 4.5 percent, the contribution of the relationship with Venezuela was 1.1 percentage point. In 2011, when growth was 4.7%, the Venezuelan contribution to the figure was 0.9%.

This means that 20% of Gross Domestic Product (GDP) over the last two years has been guaranteed by the cooperation of Venezuela, according to the report.

"This economic subjugation carries multiple risks. FUNIDES poses several scenarios for a possible partial reduction or complete cessation of the Venezuelan cooperation, which in 2011 was $564.1 million, according to the Central Bank of Nicaragua (BCN)," wrote Lucydalia Baca in Laprensa.com.ni.

"Besides the danger to the economy from the dependency being maintained with Venezuela, FUNIDES notes that futures markets projected a decline in the price of food that Nicaragua exports, so the growth of the economy in this period will be less than achieved in previous years."



More on this topic

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.

Economic Growth Projections Reduced

October 2018

The IMF projected a 3.2% growth in GDP for Guatemala in April, but in its latest review the institution reduced the figure to 2.8%.

As the International Monetary Fund (IMF), the Bank of Guatemala also reduced the projected growth of the Gross Domestic Product from 3.8% to between 2.8% and 3.2%.

Nicaragua: GDP Up 4.7% in 2016

March 2017

The best performing sector was the financial services sector, with growth of 9.8%, followed by trade, which recorded an increase of 5.8%.

From a report by the Central Bank:

The Central Bank of Nicaragua (BCN) published, on Thursday March 16, 2017, results of the estimate of Gross Domestic Product (GDP) for 2016. The results indicate that in 2016, GDP achieved a growth rate of 4.7 percent. 

Nicaragua: Economic Situation First Quarter

April 2015

The GDP growth projection of 4.5% for 2015 reflects the positive effect of increased investment and the reduction in oil prices.

From a statement issued by the Nicaraguan Foundation for Economic and Social Development (Funides):

The Nicaraguan Foundation for Economic and Social Development (FUNIDES) projects in its first Economic Situation report of the year that in 2015 the economy will grow by 4.5%.

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