Nicaragua's GDP decreases by 4.4% in the second quarter of this year

Nicaragua's GDP decreases by 4.4% in the second quarter of this year

The Nicaraguan economy registered a 4.4 percent year-on-year decrease in the second quarter of this year and an annual average growth of 1.6 percent, reported the Central Bank of Nicaragua (BCN).

The second quarter of this year, that is, from April to June, which coincided with the social outbreak in Nicaragua that has left hundreds dead, "was the most affected by the sociopolitical situation," the state-owned bank said in a report.

The BCN added, however, that it foresees "a recovery during the following quarters".

Due to the spending focus, the inter-annual evolution of GDP in the second quarter was determined by the decrease in domestic demand, a behavior partially offset by net external demand.

In the second quarter, net exports showed a drop in exports (-6.8%) and imports (-7.8%), he said.

On the other hand, in the absorption there was a reduction in consumption (-4.1%) and in gross capital formation (-7.4%), he explained.

Due to the focus on production, the inter-annual evolution of the gross domestic product (GDP) between April and June was associated with decreases in production in the hotel and restaurant sectors (-34.1%), livestock (-16.5%) %), commerce (-12.2%) and construction (-7.8%), mainly.

This decrease was partially offset by the increase in the production of fisheries and aquaculture (25%), health (3.4%), water (3.3%), electricity (3%), education (2.9%), and agriculture (2.8%), mainly, according to official information.

The Government calculated, before the socio-political crisis that has been going on since April 18, that the country's economy would grow between 4.5 percent and 5 percent in 2018, but the Central Bank updated its projection and now estimates a rebound only between 0.5 and 1.5 percent.

Meanwhile, the Nicaraguan Foundation for Economic and Social Development (Funides) warned in a report in July that if the crisis lasts until December, the economy will contract 5.6 percent, with a loss of 1.4 billion dollars and perhaps half a million of jobs.

Nicaragua has experienced a social and political crisis since April, which has generated several protests against the government of President Daniel Ortega and a balance of between 322 and 512 deaths and more than 300 "political prisoners", according to local and foreign human rights organizations, while that the Executive figure in 199 the deceased.

The Inter-American Commission on Human Rights (IACHR) and the Office of the United Nations High Commissioner for Human Rights (UNHCHR) have blamed the Government for "more than 300 deaths", extrajudicial executions, torture, obstruction of medical care, arrests arbitrary, kidnappings and sexual violence, among other violations of human rights.

Ortega rejects these accusations and maintains that it is an attempt at a "coup d'état".

The protests against Ortega began on April 18, due to failed social security reforms and became a requirement for the president's resignation, after 11 years in power.


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