Central Bank of Nicaragua presents economic report projecting 2026 growth of 3.5–4.5% and inflation of 2.5–3.5%

The Central Bank of Nicaragua released the President’s “Economic Report on 19 years”, presented to the National Assembly, summarising economic developments over the period and setting out results for 2025 and the macroeconomic outlook for 2026. The report forecasts GDP growth of 3.5–4.5% in 2026, with unemployment expected at 3.0–3.5% and inflation projected at 2.5–3.5%, supported by a continued zero exchange-rate crawl and government subsidies aimed at containing cost-of-living pressures. For 2025, the report cited accumulated economic growth of 4.9%, low inflation and unemployment of 2.4%. It also highlighted longer-run indicators including a reduction in the exchange-rate crawl to 0% and inflation to below 3%, an improvement in the central bank’s financial results from losses to profits, and an increase in international reserves from USD 924 million in 2006 to USD 8,325 million in 2025, stated as covering 3.6 times the monetary base and all deposits of the financial system. External-sector figures included a shift from a 13.1% of GDP current account deficit in 2006 to a surplus above 7% of GDP in 2025, exports rising from USD 2,007.8 million to USD 8,678.3 million, and foreign direct investment above USD 3,000 million; fiscal metrics presented included a move from a 0.1% of GDP fiscal balance in 2006 to savings of 2.4% of GDP in 2024 and a reduction in public debt from 86.9% to 51.7% of GDP over the same period.