Macroeconomic Forecast Nicaragua

BMI View: Nicaragua's good trade deficit came in at US$2.33bn in 2010, finishing the year not far from our own forecast for a US$2.06bn shortfall. We expect the goods trade deficit to deteriorate in 2011, coming in at US$2.39bn, which equates to 18.5% of GDP according to our calculations. While a more accommodative external environment is likely to buoy export growth over the coming quarters, rising levels of private consumption should mean that imports grow at a faster pace. As a result, in our view the economy remains on track to hit our medium-term trade forecasts.

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