Fiscal Deficit To Widen In 2008

June 2008 | Economic Analysis

BMI View: Increased government subsidies to hard-up businesses and consumers, and a spending spree ahead of regional elections, are likely to exacerbate Nicaragua's fiscal shortcomings in 2008. We expect the nominal fiscal deficit to widen to 2.6% of GDP this year (from a 2.2% shortfall in 2007), before gradually improving over our five-year forecast period.

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