Dimmed Economic Growth Prospects in Nicaragua
Security Theme
State Stability and Infrastructure
Keywords
Economic Stability, Nicaragua, Economics, Commerce, Migration, Remittances
Description
Nicaragua faces economic challenges in 2023 due to political and economic mismanagement, a difficult international economy, and expected inflation. Projected growth is less than 2 percent, and increased debt service, limited government capacity to raise taxes, and declining remittances will hinder financial institutions from providing lending beyond 2022 levels. Inclusive economic reforms are crucial for prosperity, including better judicial security, audits of international loans, scrutiny of corruption, and changes in the investment climate. The Ortega-Murillo family's control over the state impedes economic growth, and pressure for inclusive policies is needed. The current unsustainable economic policy relies on remittances, external loans, and tax extortion. This report provides recommendations for international financial institutions, such as the IMF, to ensure economic stability in Nicaragua amidst the challenging economic and political landscape.
Dimmed Economic Growth Prospects in Nicaragua
Nicaragua faces economic challenges in 2023 due to political and economic mismanagement, a difficult international economy, and expected inflation. Projected growth is less than 2 percent, and increased debt service, limited government capacity to raise taxes, and declining remittances will hinder financial institutions from providing lending beyond 2022 levels. Inclusive economic reforms are crucial for prosperity, including better judicial security, audits of international loans, scrutiny of corruption, and changes in the investment climate. The Ortega-Murillo family's control over the state impedes economic growth, and pressure for inclusive policies is needed. The current unsustainable economic policy relies on remittances, external loans, and tax extortion. This report provides recommendations for international financial institutions, such as the IMF, to ensure economic stability in Nicaragua amidst the challenging economic and political landscape.
