Nicaragua’s current account deficit narrowed to USD 4.0 million in the fourth quarter of 2018 from USD 431.7 million in the same period of the previous year. It was the smallest trade gap on record, as the goods shortfall fell to USD 467.8 million from USD 876.5 million in the last quarter of 2017. Also, the primary income gap decreased to USD 59.0 million from USD 82.4 million and the secondary income surplus widened to USD 418.9 million from USD 402.5 million. Meanwhile, the services surplus declined to USD 103.9 million from USD 124.7 million. Considering full 2018, the country’s current account recorded a USD 83.0 million surplus compared to a USD 675.1 million deficit in 2017. Current Account in Nicaragua averaged -214.91 USD Million from 1990 until 2018, reaching an all time high of 139.90 USD Million in the third quarter of 2018 and a record low of -448 USD Million in the fourth quarter of 2007.
Current Account in Nicaragua is expected to be 20.00 USD Million by the end of this quarter, according to Trading Economics global macro models and analysts expectations. Looking forward, we estimate Current Account in Nicaragua to stand at 90.00 in 12 months time. In the long-term, the Nicaragua Current Account is projected to trend around -340.00 USD Million in 2020, according to our econometric models.