The Nicaragua's economy contracted a sharp 4.8 percent year-on-year in the third quarter of 2018, following an upwardly revised 4.6 percent fall in the previous period. It is the steepest contraction since the second quarter of 2009, mainly due to declines in: hotels & restaurants (-36.9% vs -34.1% in Q2); internal trade (-18.2% vs -12.2%); construction (-10.3% vs -7.5%); finance and related services (-8.2% vs -2.3%); transportation and communications (-7.0% vs -1.5%) and public administration (-1.3% vs -0.2%). Conversely, the manufacturing activity rebounded (5.5% vs -5.4%) and faster growth was seen in agriculture (11% vs 1.5%); mining & quarrying (10.6% vs 0.8%); power supply (6.8% vs 3.0%) and water supply (5.1% vs 3.3%). GDP Annual Growth Rate in Nicaragua averaged 4.06 percent from 1995 until 2018, reaching an all time high of 10.90 percent in the fourth quarter of 1999 and a record low of -5.90 percent in the second quarter of 2009.
GDP Annual Growth Rate in Nicaragua is expected to be 1.20 percent by the end of this quarter, according to Trading Economics global macro models and analysts expectations. Looking forward, we estimate GDP Annual Growth Rate in Nicaragua to stand at 2.20 in 12 months time. In the long-term, the Nicaragua GDP Annual Growth Rate is projected to trend around 2.40 percent in 2020, according to our econometric models.