In the stock market, $43 million in stock documents were traded during January, which is 123% more than the amount reported for the same month in 2018, contrasting with the negative variations that have been registered since the political crisis began in April 2018.
The figures from the Nicaraguan Stock Exchange show that between January 2019 and the same month in 2020, stock market negotiations grew by $24 million, from $19 million to $43 million.
Businessmen in the sector say that for the last two years the theft of livestock and illegal slaughtering of animals has been on the rise.
Representatives of the Federation of Livestock Associations of Nicaragua (Faganic) reported that another situation that affects them is the shortage of credit for producers.
Arguing that the country's situation is complex and that the need for greater liquidity to meet its immediate responsibilities has had consequences on its funding sources, Factoring S.A. announced its exit from the local stock market.
Managers of the financial institution reported that the company began operations in 1998 and in 2011 was authorized by the Superintendence of Banks and Other Financial Institutions (Siboif), to make issues in the stock market.
Because the number of foreign visitors arriving to Nicaragua has decreased considerably, during 2019 businesses in the sector were kept afloat by the income generated by national tourists.
According to the report "Situation of Micro, Small and Medium-Sized Tourism Businesses in 2019", prepared by the Nicaraguan Foundation for Economic and Social Development (Funides), 62% of the businesses surveyed stated that at the time of the survey they had fewer workers than in March 2018, weeks before the crisis broke out.
With the Nicaraguan authorities confirming that they will review the Tax Agreement Law again in 2020, the business sector is calling for the correction of several measures that have decapitalized companies operating in the country.
On February 27, 2019, the reform to the Tax Harmonization Law was approved, which consisted in raising income tax from 1% to 2% for medium sized companies with higher income, and from 1% to 3% for large taxpayers.
In a context of economic recession, Nicaraguan exports have recorded good performance, as to November 2019 revenues totaled $2,536 million, 4% higher than reported in the same period of 2018.
Figures from the Centro de Tramites de Exportaciones (Cetrex) detail that between January and November 2018 and the same period in 2019, foreign sales increased by $89 million, going from $2,447 million to $2,536 million.
According to Fitch Ratings, banks in Nicaragua will continue to be pressured by the remaining effects of an economic contraction for the second consecutive year, a situation derived from the political crisis affecting the country.
Between March 2018 and September 2019, the number of loans granted in Nicaragua by the banking sector has been reduced by around 540,000, a drop attributed to the economic crisis the country is going through.
Data from the Superintendence of Banks and Other Financial Institutions (Siboif), say that in March last year, the month before the onset of the crisis, 1.8 million loans were reported, and in September 2019 the figure fell to 1.26 million.
In Nicaragua, businessmen claim that since June last year, 28 properties in different parts of the country are still taken by groups of people related to the Ortega regime.
According to the Union of Agricultural Producers of Nicaragua (Upanic), the 28 properties located in seven departments of the country, together represent 4,615 manzanas.
Between the first semester of 2018 and the same period of 2019, the flows of Foreign Direct Investment reaching the country decreased by 25%, a decrease that is explained by the uncertainty that predominates among businessmen, derived from the political and economic crisis.
According to official figures, from January to June of this year the country received $364 million in Foreign Direct Investment (FDI), which is less than the $483 million received in the first six months of 2018.
Although the economic and political crisis has hit several productive activities in Nicaragua, the dairy sector plans to close 2019 with a 5% increase in sales abroad.
In addition to the crisis that has affected Nicaragua since April 2018, businessmen in the sector identify as obstacles to the growth of their income the commercial obstacles that persist in Honduras and El Salvador, the entry into force of the tax reform and the constant increases in electricity tariffs.
Since April 2018 the total deposits of the National Banking System have been decreasing every month, but in August and September the trend seems to have reversed, as in both months there were increases.
According to data from the Superintendence of Banks and Other Financial Institutions (Siboif), between July and August a $39 million growth in bank deposits was reported.
After having recorded a 4% fall in GDP in 2018, the Central Bank authorities forecast that the Nicaraguan economy will begin to recover in the 2020-2021 period.
Authorities report that during 2018 arrived in the country 1.4 million visitors, a figure that is 28% lower than the 1.9 million recorded in 2017, a decline explained by the social and political crisis that the country is going through since April last year.
With several months in arrears, the Nicaraguan Institute of Tourism published the report on the country's tourism situation, which reflects that after the sector came growing steadily, during 2018 collapsed because of the crisis.
Although the construction of houses in Nicaragua is depressed because of the crisis that the country is going through, entrepreneurs in the sector see business opportunities in the resale of real estate and land.
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