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IMF sees Nicaragua's economy expanding by 3% next year

Thursday, November 17, 2022
IMF sees Nicaragua's economy expanding by 3% next year © Reuters. FILE PHOTO: A man works at an aluminum utensils factory in Managua, Nicaragua March 13, 2019.Picture taken March 13, 2019. REUTERS/Oswaldo Rivas/File Photo

(Reuters) - Nicaragua's economy is forecast to grow 3% in 2023, down from expected growth of 4% this year, the International Monetary Fund said in a statement released on Wednesday, adding its economic outlook is favorable despite global risks going forward.

"Nicaragua's economic outlook is favorable, although risks to the outlook are on the downside, primarily due to global headwinds," the IMF said in a statement after concluding a mission in the country.

The IMF said real GDP growth is expected to moderate to 3% in 2023 due to weaker external demand and tighter external financial conditions.

After contracting by about 9% during 2018-2020, Nicaragua's economic activity is recovering well, supported by appropriate macroeconomic and financial policies and substantial pre-crisis buffers from government deposits and international reserves, the fund added.

The IMF underscored that Nicaragua still needs to maintain prudent monetary, fiscal, and financial policies in order to "build resilience" and achieve sustained medium-term growth.

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01-05-2024 10:45:17 (UTC+7)

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 Lufthansa6.714Neutral
 Siemens AG175.90↑ Sell
 Deutsche Bank AG15.010Neutral
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