IMF Staff Country Reports

The Nicaraguan economy weathered well multiple shocks since 2018,
supported by appropriate macroeconomic and financial policies, substantial pre-2018
buffers (gross international reserves and central government deposits), and financing
from international financial institutions (IFIs) during the pandemic. Real GDP growth
was further sustained recently by favorable terms of trade and high remittances growth,
averaging 3.9 percent over 2022-25H1. The economy is operating under targeted
international sanctions, geopolitical reorientation of official foreign inflows, and
transfers of private property to the state since 2022. Strong fundamentals—low
inflation, a declining public debt-to-GDP ratio, twin fiscal and external surpluses, well-capitalized
banks, and sizeable buffers—should help Nicaragua withstand headwinds
from ongoing shifts in the global policy landscape.