Nicaragua remains relatively stable, but a large public debt and “turbulent” politics are causing some concerns, according to a risk analysis by the England-based Economic Intelligence Unit.
The country outranks Guatemala and Honduras in overall risk, yet Nicaragua has a high level of “legal and regulatory” problems and a $37 billion external debt that “enforces reliance on concessional financing.”
The economy remains relatively strong, according to the group’s August report, with the banking industry leading the way due to recent reforms to strengthen the sector.
Still, the report warns, “politics will remain turbulent,” citing the fact that Presidential Daniel Ortega does not command a legislative majority.
