Nicaragua
Fifty-five percent of workers in Latin America and the Caribbean work in the informal economy, a figure that has remained high for nearly two decades. This is just one of the key data points to keep in mind to achieve a fundamental objective for the region's future: creating quality jobs.
BY THE NUMBERS: NICARAGUA
OVERVIEW: NICARAGUA
The economy is projected to grow by 3.6 percent in 2026 and 3.2 percent in 2027, as growth gradually moderates toward its long-term pace. Although remittance inflows and foreign direct investment are expected to slow, both will continue to support economic activity.
The macroeconomic environment remains stable. Inflation stood at 2.1 percent in 2025 and is estimated to reach 2.9 percent in 2026 due to the conflict in the Middle East.
The fiscal surplus widened from 2.4 percent of GDP in 2024 to 3.2 percent in 2025, reflecting a tight fiscal stance in response to limited market access, and is estimated to narrow to 2.2 percent of GDP in 2026 amid measures to cushion the impact of higher oil prices. Public debt declined to 48.1 percent of GDP in 2025 and is projected to continue falling to 46.7 percent in 2027. International reserves are estimated at US$8.2 billion in 2026, equivalent to 7.5 months of imports.
Poverty is expected to decline, reaching 12.8 percent in 2026 and 12.4 percent in 2027 (based on the US$4.20-a-day poverty line, 2021 PPP).
Key risks to the economic outlook include global uncertainty, volatility in international prices, slower growth among major trading partners, lower remittance and investment inflows, as well as vulnerability to natural disasters, including El Niño.
Last Updated: Oct 6, 2026
The current IDA portfolio amounts to US$50 million and includes the Emergency Response Project to Hurricanes Eta and Iota, aimed at supporting the recovery of housing, rural roads, and artisanal fisheries. On the IFC side, the total committed portfolio stands at US$117 million, concentrated in financial markets and the real sector, including US$112.2 million in short-term trade finance through the Global Trade Finance Program.
Through the Integrated Healthcare Service Delivery Project, plans were established to improve the quality of healthcare services and prevent chronic diseases at the primary care level. Under this project, 2,518 health workers were trained, entomology laboratories were established and equipped to help prevent mosquito-borne diseases, and hospital waste management plans were implemented in 34 of the country’s 64 hospitals.
In previous years, road infrastructure (US$131.8 million), education (US$69 million), and land administration (US$50 million) projects were implemented. More than 200 kilometers of roads were built, rehabilitated, and maintained, and three key bridges were constructed to address safety challenges associated with climate-related events.
In the education sector, activities were implemented to improve quality through the construction and renovation of school infrastructure, strengthening teacher capacity, introducing digital learning in 80 schools, and translating textbooks into several Indigenous languages.
Finally, in the land administration sector, the third project under a twenty-year sector intervention continued the integration of the property registry and cadastre systems, land titling, and the demarcation of protected areas.
Last Updated: Oct 6, 2026
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