*In a statement following the conclusion of an Article IV mission to Nicaragua, the International Monetary Fund (IMF) has said that Nicaragua’s economy is experiencing “robust growth”. According to the IMF statement, Nicaragua’s “real GDP growth accelerated to around 4.5% in 2023 and the first half of 2024, from about 3.8% in 2022, on the back of robust domestic demand, while inflation is moderating”. The IMF attributes this growth to “prudent macroeconomic policies and record-high remittances” – the latter stemming from the exodus of Nicaraguans fleeing the country due to the crackdown on dissent by the authoritarian government led by President Daniel Ortega. The IMF notes that remittances accounted for 26.1% of Nicaragua’s GDP in 2023, up from 15.2% in 2021. It points out that by end-2023, relative to the size of its economy, Nicaragua had become the highest remittances-receiver country in Latin America and the Caribbean and the fourth largest globally. The IMF projects that Nicaragua’s real GDP growth will moderate to 4% in the near term and to 3.5% in the medium-term, amid a slower pace of remittances growth among other factors. This stems from “the change in immigration policies” in the US under the new government led by President Donald Trump, which is seeking to carry out mass deportations.
- MEXICO: Trump unveils steel and aluminium tariffs
- VENEZUELA: US begins deportation flights
- In brief: Port expansion announced in southern Peru
- BRAZIL: Gov’t nods to private sector in forest management
- In brief: Brazil’s vehicle production up year-on-year
- GUATEMALA: Boosting ties with Mexico
- In brief: IMF hails Nicaragua’s ‘robust’ growth
- In brief: Mexico’s vehicle sales rise, exports decline in January
- ARGENTINA: Bullrich oversees Bolivian border fence contract
- In brief: New IMF deal ‘close’ says Argentina’s Milei