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Economy / Nicaragua

Improving Fiscal Position

July 2012 | Economic Analysis

We expect Nicaragua's fiscal position will continue to improve over the long term, with robust revenue growth comfortably offsetting a steady expansion in expenditures. However, we caution that as Nicaragua is still heavily reliant on foreign assistance to balance its budget, a recent deterioration in diplomatic relations with a number of western countries could derail its progress toward greater fiscal stability in the short term.

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