Nicaragua’s GDP Grew by 3.8% in the First Nine Months of 2024
Bills of “córdobas”, the national currency of Nicaragua. Photo: X/ @radio580nic
December 28, 2024 Hour: 3:16 pm
Nicaragua’s Gross Domestic Product (GDP) grew by 3.8% in the first nine months of 2024, reported the Nicaraguan Central Bank this Saturday.
RELATED:
Nicaragua Sends Message of Solidarity and Unity to the Venezuelan People at Christmas
With this result, the annual cumulative growth up to September 2024 stood at 4.2%, according to the preliminary estimate from the state’s central bank as explained that GDP for the third quarter of 2024 (July-September) “showed positive performance,” recording a year-on-year growth of 1.9% (compared to 4.5% in the previous quarter).
For 2024, the Central Bank estimates economic growth between 3.5% and 4.5%, with inflation expected to range from 3% to 4%.
The monetary authority indicated that the year-on-year evolution of GDP in the third quarter of 2024 was driven by growth in construction activities (16.2%), fishing and aquaculture (6.9%), financial intermediation and related services (6.7%), hotels and restaurants (5.3%), and transportation and communications (4.3%), among other economic activities.
According to the bank, the quarterly GDP growth was driven by internal demand, thanks to an increase in consumption (4.2%) and fixed investment (9.9%).
“This was somewhat offset by a decrease in net external demand, resulting from a drop in exports of goods and services (-7%) and an increase in imports (4.2%),” it noted. Nicaragua’s GDP grew by 4.6% in 2023; 3.8% in 2022; and 10.3% in 2021, according to the monetary authority.
The Central Bank indicates that between the Macroeconomic Outlook 2024-2025, the economy is continuing on a sustained growth path, with most activities expanding labour market and domestic inflation having been reduced, Moving gradually towards the price stability path.
“The BCN keeps its expected GDP growth range at 3.5 – 4.5 percent, with an average unemployment rate between 3.0 – 3.5 percent, and has lowered the inflation projection range to 3.0-4.0 percent. Additionally, the projections for fiscal account balance, financial sector dynamism, and surplus in the current account of the balance of payments remain unchanged,” the monetary entity stated.
Furthermore, by 2025, a positive macroeconomic scenario is expected with GDP growth of 3.5 to 4.5 percent and an average unemployment rate of 3 to 3.5 percent and domestic inflation is projected in a range of 3.0 to 4.0 percent, influenced by the reduction in international inflation and fiscal policies that promote price stability.
Autor: ACJ
Fuente: Banco Central de Nicaragua // EFE