Nicaragua To Maintain Wide Current Account Surpluses Into 2021
- Nicaragua will run wide current account surpluses in 2020 and 2021, as strong exports and remittance inflows outweigh a recovery of imports in the months ahead.
- Fitch Solutions forecasts Nicaragua’s current account surplus will widen to 10.3% of GDP in 2020, from 6.0% in 2019, before narrowing somewhat to 6.8% in 2021 as the global economy recovers from COVID-19.
- While wide surpluses and rebounding foreign reserves will support Nicaragua’s external account stability, US sanctions and domestic political unrest pose an ongoing risk to this outlook.
(Source: Fitch Solutions)