Nicaragua’s trade deficit reaches US$383.4 million as of March

RIO DE JANEIRO, BRAZIL – Nicaragua recorded a trade deficit of US$383.4 million as of last March, 19.1% more than that recorded in the same period of 2020, the Central Bank of the Central American country reported Thursday.

The accumulated deficit in the first quarter was US$61.6 million more than that recorded in the same period of 2020 (US$321.8 million), mainly due to the increase in imports (US$171.9 million) that prevailed over that of exports (US$110.3 million), explained the State’s issuing bank in a report on foreign trade of goods.

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Exports accumulated US$897 million in the first three months of the year, which meant an inter-annual increase of 14%, mainly due to higher exported volumes (10%), the source specified.

Meanwhile, imports to March totaled US$1.28 billion, reflecting an inter-annual growth of 15.5%, as a result of the increase in the oil bill (29.9%), capital goods (24.2%), consumer goods (11%), and intermediate goods (9.1%), detailed the issuer.

According to official data, Daniel Ortega’s government projects a growth of 0.5% in 2021, with an inflation of 4%.

The gross domestic product (GDP) decreased by 2.0% in 2020, the third consecutive year of contraction, this time due to the covid-19 pandemic and the damage caused by hurricanes Eta and Iota last November by the Central Bank.

Nicaragua’s GDP fell 3.7% in 2019 and 3.4% in 2018, as a product of the socio-political crisis that has affected the country for 39 months, according to the monetary authority, which updated the figures for 2018 and 2019.

The State’s issuing bank reported a year ago that the Nicaraguan economy had decreased by 3.9 % in 2019, and now lowered that indicator to 3.7 %; and 4 % in 2018, which is now updated to 3.4 %, without any explanation.