Caribbean & Central America - March 2015 (ISSN 1741-4458)

Investment: Nicaragua hopes to attract US$1.6bn in investment in 2015, according to Javier Chamorro, the executive-director of PRONicaragua, the official export and investment agency. Such a figure would be a 10% increase on 2014, when Nicaragua received US$1.5bn. Growth in the agricultural sector, the renewable energy industry and tourism is helping to attract increasing amounts of capital to the Central American country. “There are countless companies that are developing these projects and we are getting more projects,” Chamorro said. “Right now we are working with two companies developing new projects in the country.” Investments in the production of cocoa, palm oil and textile manufacturing are expected to be announced soon.

In February, PRONicaragua announced the start of a feasibility study for a new hydroelectric dam, the “Aguas El Carmen”. The dam would be located in the northern department of Matagalpa and would cost US$350m. Once in operation it would supply around 10% of Nicaragua’s energy needs, according to PRONicaragua.

Tourism: International tourist spending in Nicaragua is predicted to grow 8.8% over the next decade, according to the World Travel and Tourism Council (WTTC). According to the WTTC, tourist spending to the country from 2013 to 2014 grew by 6.1%. Tourism is responsible for around 4% of Nicaragua’s GDP at present, though the percentage of its contribution to the country’s GDP is expected to rise to 5.8% by 2024.

In terms of jobs, the tourism industry generated 82,000 jobs directly (3.3% of total employment) and 195,500 jobs indirectly (7.9% of total employment) in 2013. By 2024, this industry is expected to support 92,000 jobs directly and 280,000 jobs indirectly, according to the WTTC.

January deflation: According to Nicaragua’s central bank, the monthly consumer price index (CPI) fell by 0.25% in January, driven by a drop in the price of fuel; annual inflation was running at 5.45%. For 2015, the central bank predicted growth of 4.5% to 5% with inflation of between 6%-7%.