Central Bank of Nicaragua (BCN): 2025 Gross Domestic Product Results

The Central Bank of Nicaragua (BCN) published the 2025 Gross Domestic Product (GDP) results, which indicate that economic activity showed greater dynamism, registering growth of 4.9 percent (3.6% in 2024).

By production focus, growth stood out in construction (17.3%), commerce (9.3%), hotels and restaurants (8.0%), mining and quarrying (7.4%), livestock (6.3%), manufacturing (5.1%), transportation and communications (5.0%), and financial intermediation and related services (4.9%), among other activities. Additionally, decreases were recorded in fishing and aquaculture (-10.2%), electricity (-5.6%), public administration and defense (-3.4%), and agriculture (-2.9%).

From an expenditure perspective, GDP growth was driven by the dynamism of domestic demand, fueled by final consumption expenditure, which grew by 5.1 percent, and gross fixed capital formation, which registered growth of 21.3 percent. Meanwhile, net external demand had a negative contribution of 4.1 percentage points, as a result of a greater contribution from the increase in imports (11.1%) compared to that of exports (5.8%).

The increase in final consumption expenditure was mainly due to consumption by households and non-profit institutions serving households, which registered growth of 5.8 percent (8.8% in 2024). Government final consumption, on the other hand, increased by 1.0 percent (a decrease of 1.2% in 2024).

Meanwhile, the growth in gross fixed capital formation was due to the 21.3 percent increase in fixed investment. primarily due to the strong performance of all its components: construction (17.3%), machinery and equipment (28.1%), and other investments (19.1%). At the sectoral level, public investment grew by 23.7 percent (18.6% in 2024), and private investment by 19.9 percent (17.0% in 2023).

Finally, nominal GDP reached 814,420.7 million córdobas (US$22,237.2 million), representing a 12.9 percent increase compared to 2024.

Source: 19 Digital - Nicaragua