Funides projections for conditions in 2016 are similar to those of 2015 and it estimates that the economy will grow by between 4.5 and 4.7%.
From the executive summary of the "First Economic Situation Report for 2016 " by Funides:
Growth projections for the world economy in 2016 have decreased from 3.4 to 3.2 percent according to the latest projections by the International Monetary Fund.
The Nicaraguan economy continues to record high growth rates and sustainable macroeconomic policies, with an average GDP growth of 5.2% in recent years.
Statement issued by the IMF:
IMF Concludes Staff Visit to Nicaragua
Press Release No. 16/191
April 29, 2016
A staff team from the International Monetary Fund (IMF) led by Gerardo Peraza visited Managua during April 25–29, 2016.
Noting the political system's inability to agree on fiscal issues, Standard & Poor's has downgraded, from BB to BB-, the rating for the country's long-term debt, giving it a negative outlook.
Costa Rica Long-Term Ratings Lowered To 'BB-' On Continued Fiscal Deterioration; Outlook Is Negative
25 Feb 2016
Source: Standardandpoors.com
OVERVIEW
The combination of growing spending pressures and lack of tax reform has weakened Costa Rica's public finances and raised its vulnerability to
Update on the economy of a region which in its entirety is the seventh largest economy in Latin America and the Caribbean.
From the Executive summary of the Regional Economic Report 2015 published by the Secretariat of Central American Economic Integration (SIECA):
In 2014 the world stage was conditioned by geopolitical tensions which heightened phenomena such as the fall in oil prices and fluctuations in supply and demand in international markets. The world economy grew by 3.4% in 2014, reflecting a rebound in advanced economies and a slowdown in developing economies, but emerging markets still accounted for 3/4 of global growth.
The Central Bank has cut its growth forecast for GDP for the year to 4% - 4.5% and expects inflation to be between 6.55% and 7.5%, higher than initially expected.
From the executive summary of the report "State of the Economy and Prospects, First Semester 2014":
At the end of the first half of the year, the Nicaraguan economy is maintaining positive growth rate, mainly driven by external demand and improved terms of trade.
The mission that visited the country is now recommending rationalizing public spending and developing a domestic bond market debt to improve the conditions of the financial system.
From a press Release issued by the International Monetary Fund (IMF ) :
"The International Monetary Fund (IMF) led by Przemek Gajdeczka visited Managua from 6 to 14 May 2014.
Economic activity grew by 4.7% on average up to September 2013, but its annual growth continues to slow down having gone down 6% at the beginning of the year to 3.5% in September.
From the fourth report on economic conditions in 2013, by the Nicaraguan Foundation for Economic and Social Development (FUNIDES):
The Nicaraguan Foundation for Economic and Social Development (FUNIDES) filed on December 17 its fourth report on economic conditions in 2013, which indicates that the economic situation remains similar to that reported in its October 2013 report. According to the Monthly Index of Economic Activity (MIEA) , the Central Bank of Nicaragua (BCN by its initials in Spanish), economic activity grew by 4.7% on average up to September 2013 , but its annual growth (month on month) , adjusted for seasonal and transient factors, continues to decelerate having gone down 6% at the beginning of the year to 3.5 % in September.
Free zones, metal mining and construction led economic growth during the year, say entrepreneurs.
This was revealed by an economic assessment made by the Superior Council of Private Enterprise (Cosep). The housing sector will not register any variation because, as in 2012, 3,500 units were sold.
As for exports, the Cosep revealed that these fell by 0.58 %, which is positive according to Aguerri as they have been sustained despite a sharp fall in prices on the international market.
Growth up to July was 4.8%, the cycle-trend points to an increase of 4.3%.
Third report on economic conditions in 2013, by the Nicaraguan Foundation for Economic and Social Development (FUNIDES):
The Nicaraguan Foundation for Economic and Social Development (FUNIDES) presented on Monday October 21 its third report on economic conditions in 2013, indicating that economic growth remains above 4%, but is still slowing.
Possible variations in the economic support from Venezuela could drastically change the evolution of the Nicaraguan economy.
From the first report on economic conditions in 2013, by the Nicaraguan Foundation for Economic and Social Development (FUNIDES):
The Nicaraguan Foundation for Economic and Social Development (FUNIDES), presented on Thursday April 11 its first report on economic conditions in 2013, which states that in 2012 the economy grew for the second consecutive year above 5 percent, which is very favorable for employment and poverty reduction. On the supply side, growth was sustained by construction, followed by mining, transport and communications. On the demand side, growth engines were private investment and exports.
First Economic Situation Report 2012 has been issued by the Nicaraguan Foundation for Social and Economic Development.
Executive summary of the report by FUNIDES:
External Environment
The growth of world economy and in particular in the advanced economies in 2011 was lower than anticipated. The latest estimates from the Economist 1 Intelligence Unit (EIU, December 16, 2011) forecast a global economic growth of 3.8 percent for 2011 and 3.2 percent for 2012. These projections are lower than the 4.5 percent initially estimated by the IMF for 2011-2012.
With the exception of the financial sector, which shows a negative trend, the country's monthly index of economic activity confirms the good results, especially for the trade, industry and farming sectors.
Nicaragua's Monthly Index of Economic Activity (IMAE) for August, just published by the country's central bank (BCN in Spanish) has recorded growth of 7.6%.
Main conclusions regarding the Central American economy between 2008 and 2011.
The State of the Region Report is a tool by Central America for Central America, which analyzes and tracks the major challenges of sustainable human development. In this fourth report, the titles of the main conclusions on the topic Economy are presented:
- Intra-regional migration is concentrated between Nicaragua and Costa Rica
Fitch Ratings has issued a special report entitled, "Central American Banking: After the Crisis, a Disparate Evolution"
In Fitch's opinion the banks have shown a mixed performance in Central America during the period of the global financial crisis. At the same time, banking systems have dissimilar perspectives on future performance, reflecting different economic growth prospects in the region.
Authorities from the Central American countries will discuss with the IMF the outlook for the coming years.
Two years after the international financial crisis significantly affect the economies of Central America, the authorities of the isthmus nations are meeting to discuss progress of the fiscal and economic reforms that have been implemented.
An article in Infolatam.com reports: "regional monetary authorities and the IMF will discuss progress in rebuilding fiscal space and ensure debt sustainability, the strength of the financial, regulation and supervision systems and prudential framework, and the interaction between structural reforms and economic growth, among other issues, according to the official program.