Mr. Marcello Estevao, Head of IMF Mission to Nicaragua, made the following statement:
"The Nicaraguan economy has recovered strongly from the global financial crisis of 2008-09. Backed by high export prices, significant cooperation and concessional flows of foreign direct investment and a macroeconomic policy which has generally been adequate, the economy registered growth rates above the 4.5% average in 2010-11. Inflation rates have remained relatively controlled, the fiscal accounts have improved with the tax reform of 2009 and the greater dynamism of economic activity, and the position of the Central Bank reserves has strengthened. In addition, the financial sector has remained stable and credit to the private sector has begun to recover.
"The prospects for 2012 are generally positive. Economic growth is projected slightly lower than in 2011 due to the contraction of global activity, and the rate of inflation has been located approximately between 8 and 9% due to rising energy prices. The risks to this outlook include slower growth in global activity, an adverse shock to the terms of trade, and sudden changes in the flows of foreign aid or foreign direct investment.
The International Monetary Fund's recommendations focus on curbing the fiscal deficit and increase government income via taxation.
A staff team from the International Monetary Fund (IMF) visited Guatemala during April 27-May 6, 2010 to conduct the third review of the Stand-By Arrangement (SBA) approved in April 2009 (see Press Release No.
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