
Analysis by Region - Emerging Markets - Nicaragua
Description
Analysis by Region - Emerging Markets - Nicaragua
We’ve raised our GDP growth forecast for Nicaragua by 0.8 ppts to 3.2% for this year, but we’ve cut our 2025 projection by 0.6 ppts to 1.6%. We expect that private consumption and investment will drive the economic slowdown next year amid slowing down remittances, but this will be partly offset by higher public consumption and strong performance from the external sector. Nicaragua's heavy dependency on remittances will weigh on economic growth in the coming years due to political isolation and a lack of structural reforms to boost growth.
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