Nicaragua's economic activity grew 0.7% in April 2026

Nicaragua's economy showed modest growth in April 2026, with the Monthly Economic Activity Index (IMAE) rising by 0.7% compared to the same month in the previous year. The Central Bank of Nicaragua reported this figure, highlighting that the cumulative growth for the January-April period reached 4.8%, with an average annual variation of 5.5%.

Several sectors contributed to this expansion. Construction led with an 11.9% increase, followed by commerce at 10.1%, and hotels and restaurants at 7.7%. Other areas showing positive growth included livestock (6.7%), transport and communications (5.4%), and financial intermediation (3.8%). However, the report also noted significant declines in manufacturing, which fell by 8.9%, and agriculture, down 8.7%. The energy and water sector also contracted by 6.3%.

The decrease in mining and quarrying was primarily attributed to reduced gold extraction. This comes at a time when the U.S. has imposed sanctions on individuals and companies involved in Nicaragua's gold sector. In February, the U.S. Treasury's Office of Foreign Assets Control (OFAC) sanctioned two children of President Daniel Ortega and Vice President Rosario Murillo, along with other officials and seven mining firms, accusing them of generating funds and maintaining political control through gold trade and alleged forced seizure of U.S. citizens' properties.

Looking ahead, the Central Bank forecasts Nicaragua's economy to grow between 3.5% and 4.5% in 2026, with inflation expected to range between 2.5% and 3.5%. This projection follows a period of varied growth rates, including a 4.9% GDP increase in 2025 and a contraction averaging 2.83% annually between 2018 and 2020.