Skip to content
Subscriber Only
Markets
Economics

Bloody Unrest Cripples Nicaragua Growth as Banks' Cash Drained

  • Nicaragua Central Bank forecasts 1% GDP growth, down from 5%
  • Tourism suffers as government seeks to restore confidence
A masked demonstrator attends a protest in Managua, Nicaragua, on Aug. 2, 2018. 

A masked demonstrator attends a protest in Managua, Nicaragua, on Aug. 2, 2018. 

Photographer: Arnulfo Franco/AP Photo

Economic growth in Nicaragua, once a top performer in the region, will slow to a crawl this year after months of violent chaos left hundreds dead and paralyzed business activity.

The $13.7 billion economy will expand just 1 percent this year in an "optimistic scenario" compared with an original forecast of 5 percent, Central Bank Chief Ovidio Reyes said in an interview in Managua, Nicaragua. The economy will shed 86,000 jobs in 2018 and unemployment will rise to six percent by year’s end from 3.7 percent in December, he said.