After hitting a record 5.1 percent growth in 2011, slowing to 4.7 percent and 4.5 percent in 2016 and 2017, respectively. Nicaragua is expected to experience a contraction in 2018 of 3.8 percent due to the social and political unrest the country has experienced since April. However, due to the high degree of uncertainty over the outcome of the crisis, this forecast is subject to changes upward or downward.
The ongoing protests, reported violence, job losses, and a fall in consumer and business confidence, have taken a social and economic toll. The country’s economic and social situation is expected to deteriorate in the second semester, threatening recent efforts in poverty reduction.
The World Bank has supported Nicaragua through the International Development Association (IDA), the World Bank’s fund for the poorest countries, to support poverty reduction measures in the country.
According to the 2016 Standard of Living Survey by the National Development Information Institute, general poverty in Nicaragua dropped from 29.6 to 24.9 percent between 2014 and 2016; while in the same period extreme poverty fell from 8.3 to 6.9 percent. Despite this progress, poverty remains high. Nicaragua is still one of Latin America’s least developed countries, where access to basic services is a daily challenge.
To better reach the country’s vulnerable families, IDA projects leverage local initiatives that stretch limited resources further and deliver sustainable results.
lastupdated: Oct 04, 2018