ECLAC: Nicaragua among top growing economies in 2013

MANAGUA, Nicaragua - July 31, 2013 - PRLog -- The Economic Commission for Latin America (ECLAC) recently forecasted thatNicaragua’s economy will grow by 5 percent this year, an increase well above Latin America’s average growth of 3 percent. Exceptionally, this time Nicaragua is among those countries leading the region’s growth, ranking fifth among the economies that are expected to have the best performance this year. The list is led by Paraguay, whose GDP could grow 12.5 percent in 2013, followed by Panama (7.5%), Peru (5.9%), Bolivia (5.5%), Nicaragua (5.0%) and Chile (4.6%).

According to Hugo Beteta, Director of ECLAC for Latin America and the Caribbean, “we must look back” to understand the positive trend the Nicaraguan economy is going through, especially regarding the entry of foreign direct investment in recent years; a task in which Nicaragua qualifies as “successful”. Beteta notes that “a consistently favorable business climate that has facilitated FDI attraction” has helped a lot.

Beteta also highlighted that the country’s stable fiscal policy, a portfolio of megaprojects, and the initial confirmation that Venezuela will keep investing in the country, are other factors that explain Nicaragua’s high growth rates.

In the 2013 Economic Survey of Latin America and the Caribbean, ECLAC states that the region’s performance for this year was partly due to slow growth in Brazil and Mexico. In addition, several countries that were growing quickly - such as Chile, Panama and Peru - experienced a slowdown in economic activity in recent months.

Central America, in turn, is projected to grow by 4 percent, while South America is expected to grow by 3.1 percent. The Caribbean is expected to maintain the slow upward trend in growth observed in previous years (to reach 2 percent).