Nicaragua: 2024 Article IV Consultation-Press Release; Staff Report; and Statement by the Executive Director for Nicaragua
IMF Staff Country Reports, February 7, 2025
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- Canonical URL
- Nicaragua: 2024 Article IV Consultation-Press Release; Staff Report; and Statement by the Executive Director for Nicaragua
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Bibliographic details
- Published: February 7, 2025
- Series: IMF Staff Country Reports
- DOI: https://doi.org/10.5089/9798400299612.002
Key findings
- Economic performance remains robust, underpinned by prudent macroeconomic policies and very strong remittance flows.
- The economy remains open and resilient after confronting multiple large shocks, and on a backdrop of transfers of private property to the state, international sanctions, and reorientation of official financing.
- Domestic and international political developments may impact economic performance by potentially increasing the cost of doing business and impacting other cross-border flows.
Outlook and projections
- Fiscal and current account surpluses are expected to narrow due to:
- Authorities’ plans to increase public investment.
- An increase in imports supporting the private consumption-led growth.
- Risks to the outlook:
- Broadly balanced in the short-term.
- On the downside in the medium term.
Policy analysis and recommendations
- Continue prudent fiscal, monetary, and financial policies to:
- Maintain macroeconomic and financial stability.
- Preserve fiscal sustainability.
- Strengthen policy buffers.
- Support medium-term inclusive growth.
- Policy coordination remains crucial alongside key reforms, including:
- Reforming the pension system.
- Strengthening the monetary policy transmission mechanism.
- Enhancing financial deepening.
- Supporting human and physical capital accumulation.
Source: Nicaragua: 2024 Article IV Consultation-Press Release; Staff Report; and Statement by the Executive Director for Nicaragua (February 7, 2025).
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- 1nicea2025001-print-pdf