Nicaragua

Nicaragua has maintained stable economic growth over the past three years, with an average rate of 4%. In 2024, the economy grew by 3.6%, a slight slowdown compared to 2023, and is expected to grow by 3.1 percent in 2025, supported by remittances, construction, services and mining.

Nicaragua is projected to grow by 3.0 percent in 2026 in a context of global economic slowdown that could affect export opportunities and foreign investment. Remittances are expected to moderate their growth but will continue to support domestic consumption.

Nicaragua’s macroeconomic environment remains stable. Public debt stands at 50.3 percent in 2025 and then at 47.9 percent for 2027, and the country has international reserves estimated at $7.2 billion in 2025 (equivalent to 9.2 months of imports), which strengthens its resilience to economic shocks. Inflation is expected to close at 2 percent in 2025.

Last Updated: Oct 6, 2025

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The World Bank Group has focused on reducing poverty and promoting shared prosperity through emergency and development projects, financed primarily by the International Development Association (IDA) and trust funds. The strategy is complemented by IFC, which supports the development of the agribusiness and financial sectors.

The current portfolio amounts to US$216 million and includes an additional US$3.3 million grant from GAFSP and two investment projects. The COVID-19 Emergency Response Project has supported health preparedness and response through the provision of equipment to health centers, vaccination, and booster dose administration. The Emergency Response to Hurricanes Eta and Iota focused on the recovery of housing, rural roads, and artisanal fisheries.

Through the Integrated Public Provision of Health Care Services Project, Nicaragua established plans to improve the quality of medical care and prevent chronic diseases at the primary care level. The results include the training of 2,518 health workers, the creation and equipment of entomology labs to prevent mosquito-borne diseases, and the implementation of hospital waste-management plans in 34 of the country’s 64 hospitals.

In previous years, road (US$131.8 million), education (US$69 million), and land administration (US$50 million) projects were successfully completed. More than 200 km of roads were built, rehabilitated, and maintained, and three key bridges were constructed to address safety issues related to climate events.

In the education sector, activities were implemented to enhance education quality through constructing and renovating school infrastructures, building capacity for teachers, introducing digital classes in 80 schools, and translating texts into several indigenous languages.

Lastly, in Land Administration, the third project in a twenty-year intervention in the sector continued the integration of the property registry and cadaster, titling of properties, and demarcating protected areas.

Last Updated: Oct 6, 2025

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The most recent Nicaragua Country Partnership Framework (2018–2022) focuses on reducing poverty and vulnerability through inclusive and sustained growth, improved access to basic services, and institutional strengthening. Its three pillars are: investing in human capital, promoting private investment to generate employment, and enhancing resilience and sustainability, with special attention to disadvantaged groups and lagging territories.

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