The executive summary of the second situation report by the Nicaraguan Economic Foundation for Economic and Social Development (FUNIDES) 2011 begins:
1. The economic recovery that began in the second half of 2009 continued (albeit at a slower rate) in the first quarter of 2011, driven both by exports and by investment, consumption and government spending.
2. Fiscal policy is still expansionary, but public finances remain under control due to the sharp increase in taxes. However, there is concern that substantial expenditure is still being made beyond the budget (in subsidies and salary bonuses) that would exert great pressure on public finances and international reserves if Venezuelan support is discontinued or decreases.
3. Projecting economic growth remains at around 3 - 4 percent for 2011-2013, similar to the government’s. However, as noted earlier, these projections are subject to various risks, some of which have recently intensified.
The report goes on to mention the risk factors which include the effects of Greece’s debt problems in the E.U., credibility of the electoral process, dependency on aid from Venezuela and the impact of rising oil prices among other things.
Source: Nicaraguan Foundation for social and Economic Development
More on this topic
July 2010
Inflation deceleration and Risks to economic recovery.
The quarterly report from the Executive Secretary of the Central American Monetary Council (SECMCA) focuses on the region's inflation and recovery prospects.
Inflation, measured by year-on-year change in consumer prices, slowed in the second quarter of 2010 to 4.9%, compared to 2.9% in June 2009. This level is within the target limits set by the region's central banks.
January 2012
First Economic Situation Report 2012 has been issued by the Nicaraguan Foundation for Social and Economic Development.
Executive summary of the report by FUNIDES:
External Environment
The growth of world economy and in particular in the advanced economies in 2011 was lower than anticipated.
April 2010
FUNIDES, the Nicaraguan Foundation for Economic and Social Development, unveiled its first economic situation report of 2010.
“Our report presents a balance of the economy up to September 2009, the results of the most recent business and consumer confidence surveys, an analysis of the Government’s economic and social program, and comparative data on Nicaragua’s competitiveness versus that of Central America”.
September 2009
Inflation, Economic Growth, Trade, Fiscal Sector and the Monetary Sector.
Regional inflation has considerably decelerated in the past quarters, as a result of the application of a series of prudent monetary policy measures, and some exogenous factors related to the abrupt deceleration of the global economy.
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