IMF Executive Board Concludes 2023 Article IV Consultation with Nicaragua
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).