Nicaragua closed 2023 with a trade deficit of $2.454 million

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By LatAm Reports Editor

Nicaragua’s trade deficit of $2,454.2 million represents 14.9 per cent of that country’s Gross Domestic Product (GDP) projected for 2023, according to official data.

Nicaragua closed 2023 with a deficit in its trade balance of 2,454.2 million dollars, 2.5% more than the one recorded a year earlier, the Central American Central Bank reported Wednesday.

The trade deficit of goods and free-sea assets accumulated between January and December 2023 was more than $60.4 million in the same period of 2022 ($2.393.8 million), the State issuing bank said in a report on foreign merchandise trade.

The trade deficit of 2,454.2 million represents 14.9 per cent of Nicaragua’s projected Gross Domestic Product (GDP) for 2023, according to official data.

This deficit in its trade balance was the result of the decrease in total imports (9,997.5 million), which also exceeded the fall in exports (7,543.3 million), the monetary institution detailed.

Total exports in 2023 were $7.543.3 million, down by $187.5 million from 2022 (7.730.8 million), a year-on-year decline of 2.4 per cent, as a result of the 8.9% decrease in free zone exports, which was partially offset by a 4 per cent increase in merchandise exports, according to the report.

Meanwhile, imports of goods and free zone goods amounted to $9.997.5 million in 2023, reflecting an annual decrease of 1.3% from 2022 ($102,124.7 million), as a result of a decrease of 18.9% in free zone imports, which exceeded the 5.6% increase in imports of goods, it said.

Nicaragua closed 2022 with a deficit in its trade balance of $2,393.8 million, 59.5% more than in 2021, according to the Central Bank.

By 2023, the Central Bank of Nicaragua updated its projection of economic growth to a minimum of 4% and a maximum of 5%, with inflation of 4.5% to 5.5%, which it has not yet known.

This article has been translated from the original which first appeared in Prensa