Nicaragua´s economy expected to grow rapidly

Jan. 20, 2011 - PRLog -- The independent economist and former president of the Nicaraguan Central Bank, Francisco Mayorga, recently declared that Nicaragua may experience an economic growth above 5 percent in 2011, due to the sound macroeconomic policies promoted by the current government.

According to Mayorga, Nicaragua will grow at least 5.2 percent. “The country´s economy has gone from a slow growing economy to a moderately growing economy in 2010 and will soon jump to a fast growing economy in the next couple of years” expressed Mayorga.

The economist noted that the good qualifications obtained by the Government of Nicaragua in boosting the country’s economic development are due mainly to favorable policies for private and foreign investment, the strengthening of the local currency, the promotion of economic growth, mainly through funds from the Venezuelan cooperation, and social programs as an important element in the redistribution of wealth.

Another important achievement was the approval of an extension of the three-year Extended Credit Facility (ECF) on behalf of the Executive Board of the International Monetary Fund (IMF) after completing the fourth and fifth reviews of Nicaragua’s economic performance in November 2010. The fact that the world’s authority on macroeconomic stability gave Nicaragua a pat on the back ensures spectators that the country has been implementing positive economic policies for the last couple of years, which have guaranteed the continuity of the program.

The positive outlook of Nicaragua's economic performance for 2011 is driven by the momentum of the export sector, which grew approximately 30 percent during 2010 and nearly reached US$2,000 million; the export sector is expected to continue growing at a similar rate during 2011.

Economic sectors that are expected to show dynamic results in 2011 include livestock, sugar, coffee, gold, aquaculture, and manufactured products. Additionally, there are expectations that the international prices for several commodities, like gold and food, will remain high during 2011.