Nicaragua: 2015 Article IV Consultation-Press Release; Staff Report; and Statement by the Executive Director for Nicaragua
February 4, 2016
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The 2015 Article IV Consultation presents economic outlook and risks of Nicaragua. Over the last three years, real GDP growth has averaged 4.8 percent, one of the highest in the region, while inflation has remained anchored by the exchange rate regime. Poverty has fallen sharply, but unemployment has increased due to a decline in the manufacturing sector. The current policy mix is broadly adequate to maintain macroeconomic stability in the near term, but Nicaragua needs to fortify its policy framework. In particular, reducing tax exonerators and exemptions and improving the targeting of fiscal subsidies would strengthen the efficiency and equity of public finances and contribute to rebuilding fiscal buffers.
Subject: Currencies, Debt sustainability analysis, Economic sectors, External debt, Money, Public debt, Public sector
Keywords: Central America, core inflation, CR, credit growth, Currencies, debt, debt ratio, Debt sustainability analysis, deficit, Global, ISCR, policy priority, public debt debt ratio, Public sector, real GDP, wage bonus
Pages:
79
Volume:
2016
DOI:
Issue:
034
Series:
Country Report No. 2016/034
Stock No:
1NICEA2016001
ISBN:
9781498390705
ISSN:
1934-7685
