Preserving macroeconomic and financial stability and restoring private sector confidence are part of the IMF's recommendations to the Nicaraguan government to mitigate the impact of the political and economic crisis.
A team from the International Monetary Fund (IMF) visited Nicaragua, and after evaluating the situation of the economy after more than six months of social and political crisis, forecasts a 4% contraction of the Gross Domestic Product by 2018.
Last year, economic activity and employment generation continued to rise, cumulative inflation reached 5.7% and international reserves were strengthened.
From a statement issued by the Central Bank of Nicaragua:
For the eighth consecutive year, Nicaragua continued to register a positive macroeconomic performance. Economic activity and job creation continued to grow and inflation remained stable, reaching a cumulative variation of 5.68 percent. The management of public finances continued to be prudent, international reserves were strengthened, while the financial system remained sound. An improved international context and good rainfall favored growth of exports, as well as an increase in the flow of family remittances and tourism which contributed to the strengthening of the country's external position.
The organization has closed its office in Managua citing the macroeconomic stability that the country has maintained since completion of the Extended Credit Facility program in 2011.
From a statement issued by the IMF:
IMF to Close Resident Representative's Office in Nicaragua
The International Monetary Fund will close its resident representative office in Managua which has been headed by Mr.
Nicaragua's economy recorded growth of 6.6% in the last quarter of 2015 and an average annual growth of 4.9%.
From a report by the Central Bank of Nicaragua:
In the fourth quarter of 2015, the Nicaraguan economy recorded growth of 6.6% and an average annual growth of 4.9% in the original data, according to the preliminary estimate of quarterly GDP (PIBT by its initials in Spanish).
The sovereign rating B + with stable outlook is based on the "economic performance, low debt burden of the government, political stability and partnership between government and the private sector through dialogue".
From a statement issued by the Central Bank of Nicaragua:
The Republic of Nicaragua has low per capita income, monetary policy rigidities, and vulnerability to external shocks.
A healthy trade momentum contributed 40% to the rise in loans signed in 2015 in the National Financial System.
In December, the National Financial System (SFN) awarded 1971.4 million cordobas in new loans, representing one of the main uses of financial institutions. Loans were awarded in almost all economic sectors, in particular the categories commercial, agricultural and consumer credit loans.
The IMF noted the positive evolution of all the country's economic indicators, and the drastic fall in poverty, with an increase of 33% in per capita consumption.
From a press release issued by the IMF:
On January 28, 2016, the Executive Board of the International Monetary Fund (IMF) concluded the Article IV consultation1 with Nicaragua.
Economic developments in 2015 have been broadly positive.
"Nicaragua has advanced greatly in recent years consolidating its economic stability, improving macroeconomic balances and reducing vulnerabilities."
From a statement issued by the International Monetary Fund (IMF):
Mr. Min Zhu, Deputy Managing Director of the International Monetary Fund (IMF), issued the following statement at the conclusion of his visit to Nicaragua today:
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 showed an increase of 4.6% between January 2013 and January 2014, driven, among other things, by a boom in housebuilding.
Nicaragua's economy has been keeping pace with growth as reflected in the latest report by the Central Bank, in which the results of the economic activity in the last twelve months up to January 2014 have been collected.
The agency emphasized prudent management of the macroeconomic policy and stressed the need to focus efforts on reducing fiscal and external vulnerabilities.
From a communiqué by the International Monetary Fund:
"An mission from the International Monetary Fund (IMF) led by Przemek Gajdeczka visited Managua from 17th to 26th of September 2013 to conduct discussions in the context of Article IV.
Arguing that the economy has benefited, the private sector will pursue and strengthen its model of negotiations with the government.
This was the message given by the Superior Council of Private Enterprise (Cosep) during the celebration of National Entrepreneurs Day. According to the Cosep, this strategy has resulted in positive economic growth in Nicaragua.
All quantitative performance criteria corresponding to the end of December 2009 and end of June 2010 have been met were exceeded.
A statement from the International Monetary Fund (IMF) reads:
The IMF Executive Board has concluded its fourth and the fifth review under the Extended Credit Facility for Nicaragua and approved an extension of the agreement
The private sector hopes to continue working 'closely' with the Government, maintaining the current 'close relationship'.
The re-election of Daniel Ortega has not worried the business sector, and they hope to continue working as before.
Mario Amador, representative of the Chamber of Industry, and the Superior Council of Private Enterprise (COSEP) also said they expect a consensus on the laws that are to be approved in the future.