Weekly Report - 04 October 2012 (WR-12-39)

NICARAGUA | Slight slowdown ahead. Economic growth will slow down slightly between now and 2016, but will still be a reasonably healthy 4-4.5%, according to Bayardo Arce, economic affairs adviser to President Daniel Ortega. Last year Nicaragua’s GDP grew by 5.1%. This year the rate is expected to decline to 4%, and afterwards steadily increase to 4.5% by 2016. Arce said inflation would be held this year at 8%, the same rate recorded in 2011 before dropping progressively to 7% by 2016. These projections, Arce said, are based on expected growth of export earnings, remittances by expatriates, earnings from tourism and foreign direct investment.