The Nicaraguan economy will grow between 3% and 4% in 2023, “in a world environment where world growth will be more timid and industrial economies will grow around 1%,” said the president of the Central Bank of Nicaragua, Ovidio, this Friday. Kings.
“If indeed the world slows down, that would also be a much better rate than the rest (of countries) and that leaves us in a position to continue with the economic expansion that we have been observing,” explained the head of the Nicaraguan issuing bank, in a public statement.
The official said that for now, producers and the Nicaraguan export sector must “try to have more gains in production volume to compensate for the moderation in prices,” but that they will still achieve a third consecutive year of economic growth by 2023.
The Government of Nicaragua projects a growth of 4% of the gross domestic product (GDP) in 2022, the second consecutive year on the rise after three years of closing with a red balance.
“We are going to have two consecutive years of economic expansion and we believe that next year it will be like that as well,” he said.
Reyes pointed out that the economic expansion will continue this year, although with a moderate growth rate in relation to the previous year, when the economy grew by 10.3%.
According to the Government of Nicaragua, the best results for the Nicaraguan economy this year are based on the positive behavior of the demand for exports with favorable prices, the growth of tourism, private investment and the flow of family remittances that has reached a new record. so far in 2022.
As of October 2022, family remittances totaled 2,578.3 million dollars, which represented an increase of 47.6% compared to the same period in 2021 (1,746.6 million dollars), and by the end of the year the authorities expect that they reach 3,170.5 million dollars.
The 2,578.3 million dollars received as family remittances as of last October represent 18.4% of Nicaragua’s GDP.
On the other hand, the head of the Central Bank said that inflation will close this year between 10% and 11%, due to the effect of the rise in international prices.
“We would expect that next year these prices in Nicaragua will moderate and be contained and we would be projecting for 2023, an inflation that could be between 5% and 6%,” he added.
The Nicaraguan economy rose 10.3% in 2021, the first year of growth after three consecutive years of closing with a red balance, according to the Central Bank.
The Nicaraguan economy had contracted by an average of -3.03% per year in the 2018-2020 period.
GDP decreased by 2% in 2020, as a result of the covid-19 pandemic and the damage caused by hurricanes Eta and Iota, in November of that year, according to the monetary authority.
In 2019 it fell 3.7% and 3.4% in 2018, due to the sociopolitical crisis that has affected the country for 56 months, according to the issuer.EFE