The International Monetary Fund published the press release and staff report for Nicaragua’s 2025 Article IV consultation, assessing that the economy has weathered multiple shocks since 2018 and continues to be supported by strong fundamentals and sizeable buffers. Real GDP growth averaged 3.9% over 2022 to the first half of 2025, helped by favourable terms of trade and strong remittances growth. The report links earlier resilience to appropriate macroeconomic and financial policies, pre-2018 buffers including gross international reserves and central government deposits, and financing from international financial institutions during the pandemic. It also notes that the economy is operating under targeted international sanctions, a geopolitical reorientation of official foreign inflows, and transfers of private property to the state since 2022, while highlighting low inflation, a declining public debt-to-GDP ratio, twin fiscal and external surpluses, and well-capitalised banks.
International Monetary Fund 2026-01-26
International Monetary Fund publishes Nicaragua 2025 Article IV report citing 3.9% average growth and strong buffers despite sanctions
The International Monetary Fund released the press release and staff report for Nicaragua’s 2025 Article IV consultation, noting the economy's resilience to multiple shocks since 2018, supported by strong fundamentals, sizeable buffers, and favourable terms of trade. The report highlights low inflation, a declining public debt-to-GDP ratio, fiscal and external surpluses, and well-capitalised banks, despite challenges from sanctions and geopolitical shifts.