Nica Economy Predicted To Grow Only 2.8%

MANAGUA – The Nicaraguan economy is predicted to grow only 2.8%, with an accumulated 11% inflation this year, according to an independent study by renowned economist Néstor Avendaño.

“The Nicaraguan economy will grow very little this year, less than 3% – optimistically we are saying 2.8%,” Avendaño said.

The economist said he based his predictions on the increase of petroleum prices in the international market, as well as energy rationing, the poor execution of public funding, the reduction of private investment and the increase in food prices.

In addition, Avendaño noted, the rain damage caused in past weeks will affect exportation of coffee, peanuts and other agricultural exports.

Avendaño’s predictions are less than those of the Central Bank, which recently calculated an economic growth between 3.7-3.9%, with inflation under 10%.

Last year, Nicaragua’s economy grew 3.7% with inflation at 9.4%. At the beginning of the year, the Central Bank had calculated a 4.2% economic growth for 2007.