Nicaragua’s economy has remained resilient in the face of multiple shocks, supported by appropriate economic policies, substantial buffers, and multilateral support. After a very strong rebound in 2021, the economy grew at a steady pace since 2022 and is expected to grow by 4 percent in 2023. Inflation is declining, and the central government is maintaining a small surplus and healthy government deposits. Remittances are projected to reach about 28 percent of GDP at end-2023, double their end-2021 level, and supporting a turnaround in the current account balance to a surplus of about 4 percent of GDP in 2023. The foreign exchange inflows and prudent macroeconomic policies, contributed to a rapid accumulation of gross international reserves to US $5 billion by end-October (or about 6 months of imports, excluding maquila).