Nicaragua: 2023 Article IV Consultation-Press Release; and Staff Report
IMF Staff Country Reports, January 19, 2024
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- Nicaragua: 2023 Article IV Consultation-Press Release; and Staff Report
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Bibliographic details
- Published: January 19, 2024
- Series: IMF Staff Country Reports
- DOI: https://doi.org/10.5089/9798400265037.002
Overview
- Nicaragua’s economy has remained resilient in the face of multiple shocks, supported by appropriate economic policies, substantial buffers, and multilateral support.
- The external and fiscal positions are assessed to be sustainable under the baseline scenario, given the current policy mix and financing plans.
Growth and Outlook
- In 2024 and the medium-term real Gross domestic Product (GDP) growth is expected to converge to potential sustained by domestic demand and remittances.
- Near-term upside scenario: higher than projected real GDP growth due to sustained recovery in domestic demand and remittances.
Risks to the Outlook
- Downside risks include:
- a deterioration in the terms of trade;
- a more severe global downturn than currently incorporated into the baseline scenario;
- natural disasters;
- stricter international sanctions.
Policy Recommendations and Structural Priorities
- Invest in human capital and infrastructure.
- Implement policies to raise labor force participation.
- Enhance the business environment by strengthening government institutions and frameworks in the areas of:
- contract enforcement;
- protecting property rights;
- resolving insolvencies.
Content in this bundle
- 1. Nicaragua’s International Trade Linkages