Macro - Country Economic Forecasts - Nicaragua
GDP growth rebounded by a stronger-than-expected 10.4% last year, driving output back to 2017 levels and compensating for the three-year long crisis caused by Ortega's administration. We expect Nicaragua’s GDP growth to slow to 2.5% this year as the government scales back the fiscal support that was provided ahead of last November's presidential elections. However, risks remain tilted to the downside as the extension of Ortega’s regime ensures further international isolation which could jeopardize the country's trade links with the US, its main export destination.
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