IMF ratifies Nicaragua’s economic growth and macroeconomic stability

MANAGUA, Nicaragua - May 19, 2014 - PRLog -- After its recent visit to Nicaragua to evaluate the country’s economy performance, the International Monetary Fund (IMF) officially declared that “over the past few years, Nicaragua’s economy grew at relatively high rates and its macroeconomic stability strengthened.”

The IMF staff team, led by Przemek Gajdeczka, visited Managua during May 6-14, 2014 to evaluate the performance of the Nicaraguan economy and prepare the next Article IV Consultation. The staff team met with officials from the Central Bank, the Ministry of Finance, other members of the economic cabinet, and representatives of the private sector. They reviewed recent economic developments and discussed the economic outlook for Nicaragua.

After the visit, the IMF issued an official statement highlighting Nicaragua’s positive economic developments. In 2013, the country’s real GDP growth was 4.6 percent and inflation was 5.7 percent. Likewise, growth in private sector credit remained elevated (20 percent) while the capitalization of the banking system remained above the regulatory requirements.

According to the statement, Nicaragua’s economic outlook remains favorable for 2014. The staff team projects a real GDP growth of 4.3 percent, inflation of about 7 percent, and the consolidated public sector deficit below 2 percent of the GDP.

The IMF also included recommendations for Nicaragua: “To maintain this favorable economic outlook it is necessary to further strengthen public finances, continue modernizing the functioning of the financial system, and implement additional improvements to the electricity generation matrix.”