Macroeconomic Forecast Nicaragua

The upward march of consumer price inflation continues to cause us considerable concern in Nicaragua. Headline prices rose by 19.3% y-o-y in April, the fifth consecutive month of accelerating inflation. The government is trying to alleviate pressures, but with little success. In May, President Daniel Ortega declared that the authorities have switched their attention away from the agricultural export market, in order to concentrate on local needs. Nevertheless, we see inflation remaining at a still-high 17.5% by end-2008.

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