Nicaragua To Rein In Public Deficit In 2021 Alongside Economic Recovery

• A recovery in revenues and restrained spending will see Nicaragua’s public deficit narrow to 2.0% of GDP in 2021, from 2.5% in 2020.
• Spending will continue to be focused on social programs and healthcare expenses, in addition to hurricane reconstruction efforts.
• The Nicaraguan government will prioritize gradual fiscal consolidation moving forward, as US sanctions limit its options for financing its deficits.

(Source: Fitch Solutions)