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Nicaragua’s economy speeds up in first trimester of 2014
During the first trimester of 2014, Nicaragua’s economy demonstrated signs of acceleration in its growth rhythm in relation to 2013, according to the Central Bank of Nicaragua’s report “State of the Economy and 2014 Perspectives”.
The report attributes the economy’s dynamism to more favorable external conditions, especially to a greater demand and improved international prices of Nicaragua’s main export products. “The prices of coffee, gold and meat are improving, therefore, more dollars are entering the country, which is benefitting our economy”, acknowledged Ovidio Reyes, President of the Central Bank of Nicaragua, during the presentation of the report.
As of March 2014, merchandise exports have reached US$680 million, representing a growth of 8.6 percent. Likewise, free zones exports grew 15.1 percent and totaled US$561.2 million, mainly supported by the textile and automotive harnesses industries.
Moreover, energy production grew 6 percent, employment creation 7.5 percent and inflation just 1.38 percent. In addition, the country has also been performing positively in indicators such as tax revenue, international reserves, banking credit, and financial system deposits.
Nicaragua’s economic dynamism was also reflected in the Monthly Economic Activity Index, which registered a growth of 5.1 percent during February 2014 (4.6 percent in February 2013). This growth was mainly supported by the performance in activities of the manufacturing, forestry, fishing and mining industries, related to the exports sector, as well as construction and commerce activities.
With these first trimester results, annual growth rate projections remain in the range between 4.5 and 5 percent, and an annual inflation rate of 6-7 percent.