Nicaragua maintained a good growth rate of 4.7 percent and 4.5 percent in 2016 and 2017, respectively. But, due to the social and political unrest that the country has experienced since April 2018, the economy suffered a contraction in 2018 of 3.8 percent. Forecasts indicate that this contraction will increase to -5 percent in 2019. Due to the high degree of uncertainty about the outcome of the crisis, this forecast is subject to change.
The reported violence from the last months, job losses, and a fall in consumer and business confidence, have taken a social and economic toll, 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.
Last Updated: Apr 04, 2019