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.
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.
The economy grew by 4.6% in 2013, driven by private consumption, exports and government spending.
The greater optimism envisioned by entrepreneurs for the future of the economy validates the results achieved in 2013, according to the Economic Situation report by the Foundation for Economic and Social Development (Funides).
Funides report:
The economy grew for the third consecutive year at high rates.
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.
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.
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.
The country is expected to end 2013 with economic growth of between 4.2% and 5% and inflation less than 7.5% .
From a press release by the Central Bank of Nicaragua:
The Central Bank of Nicaragua (BCN) and the Ministry of Finance reported that the main economic indicators of the country show there was good momentum in 2013 but vulnerability in an international context marked by a reduction in raw material prices and weak recovery of the world economy.
Up to March the Nicaraguan economy registered a growth of 3.6%, representing a deceleration of 3.4% relative to growth in the last quarter of 2012.
From a statement from the Central Bank of Nicaragua:
Regarding expenditure, PIBT growth was supported by a boost in net foreign demand and gross capital formation. The result of net external demand stemmed from the 1.3 percent growth in exports (15.7% in fourth quarter 2012), aided by the contraction of imports recorded in the reference quarter (-4.3%).
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.
FMI: "Recessions associated with financial crises tend to be severe. Recoveries from such recessions are typically slow."
If such recessions are globally synchronized then they tend to last even longer and be followed by recoveries that are even weaker.
Countercyclical policies can be helpful in ending recessions and strengthening recoveries. In particular, expansionary fiscal policies seem particularly effective.
FMI: "Recessions associated with financial crises tend to be severe. Recoveries from such recessions are typically slow."
If such recessions are globally synchronized then they tend to last even longer and be followed by recoveries that are even weaker.
Countercyclical policies can be helpful in ending recessions and strengthening recoveries. In particular, expansionary fiscal policies seem particularly effective.