Macroeconomic Forecast Nicaragua

BMI View: At 17.0% y-o-y January and rising, consumer price inflation remains the pressing economic issue in Nicaragua. The country's growing shortages in energy and agriculture are being brutally exposed at a time when robust global commodity prices continue to bite. Our end-2008 CPI forecast of 10.0% appears a long way off, and without a vast improvement in upcoming inflation numbers, we acknowledge that our projection could easily be overshot. Nevertheless, we do expect inflation to moderate eventually during the course of this year, and as such, we are standing by our forecast for now.

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