Macroeconomic Forecast Nicaragua

On 23 June, President Daniel Ortega sent a proposal to congress to reduce the current budgeted expenditure by US$40.0mn, based on a forecast fall in total government revenue of US$127.6mn. The spending cuts will particularly impact upon education (US$3.8mn) and health (US$6.5mn). Even with the cuts, we are still downbeat on Nicaragua's fiscal prospects this year, and reiterate our nominal deficit projection of US$460.5mn (6.6% of GDP), a situation exacerbated by the recent decision by the US to hold back US$64m in aid disbursed through the Millennium Challenge Corporation (MCC).

To read the full article, please choose one of the following options: