Nicaragua sustainably maintains its economic stability, observing a third consecutive year of growth, as highlighted in the recent Management Report of the Central Bank of the Latin American nation for the year 2023.
In this sense, the favorable economic performance was supported by appropriate macroeconomic policies, according to the report, with notable dynamism in most activities in all economic sectors. The primary and service sectors stood out especially.
The growth of the Gross Domestic Product (GDP) was strengthened by external flows, while national inflation experienced a gradual reduction, attributed to structural factors and the transfer of international prices to national prices.
The «Management Report» summarizes the main actions carried out by the Central Bank of Nicaragua in its monetary, exchange, financial, statistical, institutional and social projection fields during the year 2023.
Stimuli for economic growth
Regarding monetary and exchange rate policy, the Central Bank continued to facilitate favorable financial conditions to stimulate economic growth and financial intermediation, keeping its Monetary Reference Rate (TRM) unchanged at 7.0%.
In addition, the banking entity observed a growth in cash and monetary aggregates, as well as an increase in the use of monetary instruments in national currency by the financial system. A low and stable exchange rate gap was maintained in the foreign exchange market, and gross international reserves experienced an increase.
In the area of macroeconomic statistics, coverage was expanded by including data from microfinance institutions and securities institutions in the monetary reports of the national financial system.
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Regarding interaction with international organizations and institutions, the BCN received a delegation from the International Monetary Fund (IMF) to carry out the Article IV consultation corresponding to 2023.
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In addition, the financial institution assured that constant dialogue continues with the three credit risk rating agencies that evaluate Nicaragua (Fitch Ratings, Moody’s Investors Service, S&P Global Ratings).
