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IMF Report: Nicaragua's Economy Shows Resilience Amid Global Headwinds
By Guy José Bendaña-Guerrero & Asociados
The International Monetary Fund (IMF) has completed its 2025 Article IV consultation with Nicaragua, offering insights for international investors, trade partners and global markets on the country’s macroeconomic trajectory, structural opportunities and lingering uncertainties.
According to the Article IV consultation, the IMF’s annual assessment of a member economy’s performance and prospects, Nicaragua has demonstrated steady growth despite multiple challenges.
The IMF found that:
-Real GDP expanded at a healthy pace in 2025, driven by remittances, favorable terms of trade and robust domestic demand.
-Growth is expected to moderate to around 3.4% in 2026, slightly below recent pace but still above many peers in Latin America’s lower-middle-income segment.
-The country’s macroeconomic fundamentals remain relatively sound — including low inflation, strong fiscal balances and ample foreign exchange reserves — positioning it to withstand external shocks better than many would have expected just a few years ago.
Trade: Exports and Remittances Anchor External Stability
Remittances, primarily from Nicaraguans living in the United States, continue to be a critical pillar of private consumption and foreign receipts, accounting for a significant share of GDP.
Exports of agricultural products and manufactured goods remain key, though the IMF flagged that slower global growth and tighter trade conditions — particularly U.S. tariff policies — could weigh on export performance.
The IMF stressed the necessity for diversification of export markets and products to reduce vulnerability to regional policy shifts, especially given Nicaragua’s heavy trade interdependence with the United States.
Investment Climate: Stability vs. Structural Barriers
From an investment perspective, Nicaragua offers both opportunity and caution. Positives that may attract foreign capital:
-A well-capitalized banking system with low non-performing loans and significant liquidity.
-Strong macro-policy buffers and fiscal surpluses that reduce sovereign risk, on paper.
While the IMF continues to project moderate growth, the balance between structural reform and stability will be key to unlocking Nicaragua’s potential as a viable trade and investment partner in the region.
Guy José Bendaña-Guerrero & Asociados
GUY JOSE BENDAÑA GUERRERO & ASOCIADOS has a long and prosperous tradition in the field of intellectual property (IP) in Nicaragua, with roots that go back to more than 100 years, resulting on long-term relationships with renowned clients and attorneys worldwide.
The firm has its origins in the law firm Henry Caldera & Henry Caldera-Pallais, founded in 1907 by Mr. Henry Caldera. That same year of 1907, through the efforts of Mr. Caldera, Nicaragua had its first Trademark Law. In the late 1930’s, Mr. Caldera’s oldest son, Dr. Henry Caldera-Pallais, after studying law in Nicaragua, attended the University of Michigan, where he graduated as a Registered U.S. Patent Attorney. Dr. Caldera-Pallais in 1964 was a founding member of the Interamerican Association of Intellectual Property (ASIPI), the first regional intellectual property organization in the Americas. The firm continued to grow during the administration of Dr. Franklin Caldera, son of Dr. Caldera-Pallais, who obtained his doctoral degree in law from the Universidad Centroamericana in 1973.
Since 1985 the current partners, Dr. Guy José Bendaña Guerrero and Mrs. Blanca Aragón de Bendaña, took over the management of the firm. Dr. Bendaña Guerrero, Director of the firm, has distinguished himself as one of the most respected authorities in Central America in the field of intellectual property and law in general, being the author of several books such as “Course of Industrial Property Law”, “Study of the new Laws of Industrial Property” and “New Study of Contracts “, among others. Mrs. Aragón de Bendaña has served as the firm’s general manager and, thanks to her excellent management, the firm has been in constant growth, with a highly qualified staff committed to excellence. Since 1996, partner Julián José Bendaña Aragón joined the firm, and has been standing out as one of the most recognized attorneys in the field of intellectual property.
We have adapted to the constant change of the business world, supporting our clients in finding the most appropriate legal solutions for each moment. The firm distinguishes itself by understanding the needs of its clients, offering personalized service and adding value to its activities.
Nowadays we continue to be the leading firm in Nicaragua in the area of intellectual property, and at the same time, we have been consolidating other areas of service within the civil, commercial and labor fields, as well as litigation and consulting in general. The firm is well positioned to guarantee a pragmatic service that meets the requirements of the most demanding clients.
