The latest projection from the Central Bank on economic growth in Nicaragua is that the year-end growth in GDP should be between six and eight percent.
This is based on the latest available monthly economic activity report for September from the Central Bank of Nicaragua (BCN), delivered by BCN President; Ovidio Reyes.
Economic activity continues to demonstrate a recovery after the civil unrest of 2018 and the Covid-19 pandemic which began in the second quarter of 2020.
Sectors (September 2021 compared to September 2020)
Using this comparison, the sectors recording the highest growth in monthly economic activities were; Mining and Quarrying 29.0%, Construction 18.6%, Hotels and Restaurants 18.4%, Commercial 15.4%, Transportation and Communications 14.0%, Energy and Water 7.0% and Agriculture 3.2%.
Those not doing so well, when compared to September last year were; Fishing and Aquaculture -30.9%, Financial Intermediation and related services -4.0 and Manufacturing -1.2%.
Behavior of Economic Activities in General
Hotels and restaurant services, although showing an 18.4% increase for September 2021 (when compared with September 2020), recorded an accumulated growth of 6.4%, January to September, 2021.
In agriculture, growth was in crops such as; beans, tobacco, sorghum, sugar cane, corn, coffee, sesame and peanuts, among other products.
Livestock increase (6.8% accumulated January-September) was due to increased beef and swine slaughter as well as an increase in live cattle exports.
The decrease in fishing and aquaculture was caused by lower catches in various fishery products, particularly lobster.
Mining and quarrying continues to anchor economic growth in Nicaragua with an accumulated 43.2% increase from January to September. Gold and silver being the best known, however, and, quarry stone, select material, crushed stone and plaster also performed well.
The lower numbers for the group of activities that make up the manufacturing industry were caused by lower production levels in drinks, wiring harnesses, food (including meat and fish) and textiles.
Construction activity grew by 28.5% accumulated January to September. Sales of materials such as quarry stone, blocks, sand, wood, aloquines (cobblestones), cement and crushed stone.
The Energy sector experienced a growth in power generation with higher thermoelectric, wind and biomass generation.
Water supply and sewage economic activities increased in proportion to the expansion in the domestic water distribution network (drinking and sanitary sewer).
Source: Monthly Index of Economic Activity (IMAE – Indice Mensual de Actividad Económica) September 2021
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