The Central Bank estimates the country's economy to grow between 1.5% to 2% in 2010, and inflation to fall between 3% to 5%.
Antenor Rosales, president of the Central Bank of Nicaragua, explained that this growth estimate is based on the expected recovery of the global economy, an increase in remittances, exports and foreign direct investment.
"Another contributing factor will be the Free Trade Agreement with Panama, and the accords negotiated with Russia and the countries from ALBA", reported EPA.
The Central Bank of Nicargua will maintain its economic growth objectives, estimated at around 3% to 4%, despite the financial crisis.
Despite the financial crisis in the US, Nicaragua is not going to change its economic growth projections of 3% to 4% because "it was calculated based on the price of petroleum" which has been falling, said the president of the Bank, Antenor Rosales, to local station, Channel 8.
The Government of Nicaragua has committed to the IMF to finish the year with an inflation index of 18.1%
It also hopes that the Gross Domestic Product (GDP) of the country will grow by 3 to 4%, according to the president of the Central Bank (BCN), Antenor Rosales.
The president of the BCN said that the "letter of intentions" shows the commitment of Nicaragua to maintain macroeconomic and financial stability, which will be reviewed in Washington in the next few months in order to maintain the agreement with the country so that credit cooperation (valued at $118 million) by the organization con continue to flow.
High food and oil prices are moving Nicaragua toward hard times, as record high inflation and an economic slowdown make it more and more difficult to reach growth projections.
It's part of a worldwide crisis and the government recognizes that Nicaragua could be harder hit than other nations, say participants in an conference on the economy.
Nicaragua has the lowest level of development in Central America, with less access to public services such as potable water, electricity, telephones and internet, all of which are more expensive than elsewhere.