The report notes that although private consumption remains the main engine, the pace of growth in economic activity continues to slow.
Economic Situation Report of the third quarter of the year, prepared by the Nicaraguan Foundation for Economic Development:
The Nicaraguan Foundation for Economic and Social Development (FUNIDES) presents its third report on economic conditions in 2014, which states that in the first 7 months of 2014, the economy has continued a slowdown which began in the fourth quarter 2013. The average variation of 12 months of the Monthly Index of Economic Activity (MIEA), original series, which had reached 4.8% in April stood at 4.2% in July.
Stagnation in private investment has been attributed to a 26.7% reduction in the number of homes completed up to March 2014 compared to the same month last year.
The decrease in investment in the sector seems to be the main reason behind the stagnation showing in construction activities in the country, one of the main drivers of the economy.
"...Official data indicates that the growth of the overall investment was 1.6% in the first quarter of 2014. However the private sector barely grew 0.5%. A total "stagnation" is recognized by the Nicaraguan Chamber of Construction (CNC) and the Nicaraguan Foundation for Economic and Social Development (Funides). "
A slowdown in the pace of economic activity in the country and loss of dynamism in private investment has been indicated.
Economic Situation of the second quarter of the year, prepared by the Nicaraguan Foundation for Economic Development:
The Nicaraguan Foundation for Economic and Social Development (FUNIDES) presents its second report on economic conditions in 2014, which states that in the first 4 months of this year, the economy experienced a mild slowdown. According to the 12-month average variation of the Monthly Index of Economic Activity (IMEA), growth which had been over 5 percent since April 2013, fell to 4.8 percent in April, largely due to the earthquakes in that month.
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.
Economic growth remains above 4% but it is slowing down and becoming concentrated on a few activities.
The Nicaraguan Foundation for Economic and Social Development (FUNIDES) presented on Tuesday July 16 its second report on economic conditions in 2013, which indicates that economic growth remains above 4 percent, but is slowing down and is concentrated on a few activities.
The General level of consumer price index in May had a variation of 0.64%, 0.31% less than in the same period in 2012.
Monthly inflation report by the Central Bank of Nicaragua:
I. National Inflation
In May, domestic inflation was 0.99% (-0.31% in 2012), resulting from increases in Managua 1.11% and 0.78% in the rest of the country. With these results, the cumulative domestic inflation rate was 3.60% (2.53% in the same period 2012).
The general level of the consumer price index in April had a variation of 0.64% compared with the index for the month of March.
Monthly inflation report by the Central Bank of Nicaragua:
I. National Inflation
Monthly inflation in April 2013 closed at 0.64% (1.06% in the same period in 2012). This rate was determined primarily by the seasonality in the food division (the groups which increased were fruits and vegetables) and the application in the second half of April for an adjustment in the electricity rate (7.78%), which had an influence on the divisions of housing, water, electricity and other fuels being the second largest contributors to the monthly inflation (0.11%). Significantly, these increases were offset partially by lower prices on fuel and dairy products.
The agribusiness sector drove growth in production, with sugar, dairy and rice as the leaders.
According to an article in Laprensa.com.ni, "The performance of the industrial sector at the end of the year is very positive. Six percent growth has been achieved due to the dynamic combination of various activities that make up the industry."
Most noteworthy were the activities of producers of sugar mills who led production and increased investments in clean energy generation.
Up to the third quarter of 2011, private construction grew by 28.8% according to the Central Bank of Nicaragua (BCN).
The BCN's report states:
Up to the third quarter of 2011, private construction recorded accelerated growth for the third consecutive time, the annual average going up by 28.8 percent (19.9% the previous quarter).This was the result of the dynamism observed in residential, service and trade buildings, while industrial buildings showed a lower rate of contraction from the previous quarter.
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%.
The sector grew 3.3%, boosted by private and state investments.
For the first time in 5 years, the figures presented by the Central Bank showed a recovery in the real estate industry, one of the worst-hit by the global economic crisis.
Mario Zelaya, president of the Nicaraguan Construction Chamber, told newspaper La Prensa that they believe this recovery to be sustainable and not temporary.
Inflation deceleration and Risks to economic recovery.
The quarterly report from the Executive Secretary of the Central American Monetary Council (SECMCA) focuses on the region's inflation and recovery prospects.
Inflation, measured by year-on-year change in consumer prices, slowed in the second quarter of 2010 to 4.9%, compared to 2.9% in June 2009. This level is within the target limits set by the region's central banks.
Central American countries still need to improve their economic performance to reach investment grade ratings.
On its Quarterly Country Risk report for June 2010, the Central American Monetary Council (SECMCA), notes that Moody’s Investor Service improved the foreign currency risk ratings for Guatemala and Nicaragua. For Guatemala, the criteria for this improvement included a stable macroeconomic environment, backed by prudent fiscal and monetary policies, and for Nicaragua improvement in debt indicators and low fiscal deficits.