ECONOMIC PERSPECTIVES FOR NICARAGUA

In recents years, the Nicaraguan economy has stood out for maintaining levels of growth above the average for Latin America and the Caribbean. This is highlighted by differents economics organizations worldwide, for which this growth is the subject of study and example, highlighting the different macroeconomic policies, combined with the constant expansion in exports and foreign direct investment.

It is worth mentioning that foreign direct investment has been encouraged by the geographical position of the country, the different investment promotion policies, the constant interest in issues of citizen security and due to the same economic development that the country is currently going through, which is one of the most booming economies in Latin America and the Caribbean, second only to Panama and the Dominican Republic.

The World Bank estimates that Nicaragua at the end of 2017 will have an economic growth of 4.6%, while the Fondo Monetario Internacional (FMI) and the Comisión Económica para América Latina y el Caribe (CEPAL) estimate a growth of 4.5%. However, the Banco Central de Nicaragua (BCN) recently reported that the growth forecast could close between 4.7% and 5.2%.

The truth is that the growth in the Nicaraguan economy is real, tangible and measurable. The country has stopped being a declining economy, which we have achieved with the implementation of pro-cyclical fiscal policies, allowing a better increase in public spending and placing us in a better economic position, above Guatemala, El Salvador, Honduras and Costa Rica. as projected by The World Bank.

Among the factors of economic growth we highlight the personal security that the country provides to nationals, tourists and investors, together with monetary stability and exchange stability, which is a key condition for the country's economic growth.

The prospects for economic growth for the year 2018 are very encouraging but with slight increases. This could change if we develop a correct diversification in exports as economic policy of the country, with the objective of invigorating the economy, increasing employment and productivity, as suggested by the Fundación Nicaragüense para el Desarrollo Económico y Social (FUNIDES). This diversification consists on the identification of new products and services that have greater economic complexity, similar to those currently exported and that generate opportunities for future diversification, in addition to the products and services that have growing international demand.

Differents economics organizations estimate an economic growth for Nicaragua in 2018 that ranges between 4.2% and 4.5%. Standing out as pillars of this growth are the construction sector, mining and the agricultural sector, which we hope will continue to drive Nicaragua's growth.

The increase of the subsidy in the constructions of social interest or multi-family dwellings, the constant modernization of the companies that go from being located in residentials, to position in corporate and commercial spaces, and the constant growth of luxury homes, stand out in the construction sector which it is expected to continue its growth in 2018.

It also highlights the growth of metallic and non-metallic mining, highlighting gold exports as the third most important export item in the country. It should be noted that the mining sector stimulates others economics activities that provides products, services and goods that will directly or indirectly continue to develop the Nicaraguan economy.

The government and Nicaraguan producers foresee that 1.7 million manzanas of land will be grown within the 2017-2018 period, of which 1.2 million will be of basic grains, among which beans, corn, sorghum and rice stand out. These figures could represent an increase of 8.4% with respect to the 2016 - 2017 cycle, according to figures from the Banco Central de Nicaragua (BCN).

Another very important aspect of economic interest is foreign direct investment, which has been attracted, among other aspects, by the geographical position of the country in conjunction with the development of security policies in terms of violence and organized crime, and the modernization of the legislation on investment matters, exemptions and exceptions to different economic sectors.

We estimate that this economic growth could be higher than expected by the differents organizations, if we diversify the productive structures with added values ​​and incorporate the use of technology and applied knowledge, to enhance public and private investment.

For the aforementioned, we can conclude that Nicaragua is in a process of constant modernization of its economy.