IMF Staff Country Reports

Nicaragua: Selected Issues and Statistical Appendix

Publication Date:

December 13, 2002

Electronic Access:

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Summary:

This Selected Issues paper and Statistical Appendix examines factors that have determined long-term growth in Nicaragua. Stylized facts suggest that government policies have had a decisive influence on growth. In particular, productivity and capital accumulation suffered during periods of excessive deficit spending and inadequate enforcement of private property rights. A sectoral analysis of growth reveals that liberalization and deregulation in the 1990s led to deep structural changes in the economy. The paper also describes the main characteristics of Nicaragua’s tax system, identifying key weaknesses and their economic costs.

Series:

Country Report No. 2002/269

Subject:

Domestic debt External debt Production Public debt Taxes Total factor productivity Value-added tax