Join this Casa Ben Linder delegation focussing on Nicaraguan culture! We will travel to the Autonomous Region of the Southern Caribbean Coast of Nicaragua, which is the heart of Nicaragua’s Indigenous and Afro descendant communities. Traveling by bus, we will be in Bluefields for two weekends culminating the Mayo Ya celebrations, which include marching bands, dancing in the streets, and parades. During the week we will visit Orinoco, the Garifuna community, and take a trip to the beautiful Pearl Keys with their famous white sand beaches in the turquoise waters of the Caribbean. Write: casabenjaminlinder@gmail.com to find out more!
Nicaragua’s economy “weathers multiple shocks” including US attacks
By John Perry
[Nicaragua-based journalist John Perry writes for the London Review of Books, FAIR, Antiwar.com and Covert Action. This article was first published in Counterpunch on Feb. 6, 2026.]
The IMF’s annual report on Nicaragua, released in January, again praised the government’s macroeconomic management and highlighted GDP growth of close to 4% in 2025.
The International Monetary Fund’s new assessment of Nicaragua’s economy labels it as “strong” no fewer than 56 times. But it also shows how key factors in the country’s growing prosperity – export earnings, trade relations and remittances (money sent by Nicaraguans living abroad) are vulnerable to US attacks. The IMF points out that US sanctions – more appropriately known as unilateral coercive measures – have severely restricted the help the country gets from multilateral bodies like the World Bank.
Nicaragua’s relationship with the IMF is an odd one. On the one hand, the institution’s annual “Article IV” reports are consistently positive, praising the way that the country’s economy “weathered well the multiple shocks” of the 2018 coup attempt and the 2020 pandemic. Since 2008, the IMF hasn’t had to save Nicaragua from economic collapse and hasn’t tried to impose the “structural adjustment” programs that have been justly criticized when used elsewhere.
On the other hand, when Nicaragua’s government did ask for temporary assistance during those two crises (2018 and 2020), it only received help during the second one. Two years ago, I asked the government’s then finance minister, Ivan Acosta,
why the IMF had said “no” when 2018’s attempted coup had dealt such a blow to the country’s economy. He explained that while officials confirmed that Nicaragua qualified for emergency assistance, they also advised that any request would be turned down by the IMF’s US-dominated board. At the time, legislation was passing through the US Congress imposing sanctions on Nicaragua. These required US officials to block any funding by international bodies (such as the IMF) whenever they had the power to do so. Acosta was therefore quietly asked by IMF staffers not to make any loan requests, so they wouldn’t be turned down.
Other institutions like the World Bank bowed quickly to US pressure and halted their projects, even those aimed at Nicaragua’s poorest communities. Both the IMF and (belatedly) the World Bank later helped the country with loans during the pandemic and in the aftermath of two devastating hurricanes in 2020, but only with modest amounts. While IMF loans are no longer needed, World Bank funding would significantly strengthen the country’s poverty-reduction programs, but it has again been halted. Acosta estimated that this costs Nicaragua up to $600 million annually in lost development finance. As he put it, a country whose income per head is (currently) about $2,900 annually is being penalized by countries (the US and its allies) whose per capita income is as much as $80,000.
Despite these obstacles, on January 20 the IMF’s annual report on Nicaragua again praised the government’s macroeconomic management and highlighted GDP growth of close to 4% in 2025, higher than the Latin American average, reflecting a strong recent recovery. “The Nicaraguan economy has weathered multiple shocks since 2018 thanks to appropriate macroeconomic and financial policies,” it said. The government shows “prudence” in its fiscal, monetary, and financial policies which will “contribute to maintaining macroeconomic and financial stability, preserving fiscal sustainability, and strengthening policy protection mechanisms.” The IMF also remarked on the country’s significant liquidity reserves, low inflation, declining public debt-to-GDP ratio, good performance in collecting taxes, growing financial surpluses and well-capitalized banks.
Government anti-corruption measures were also acknowledged, including a new legal framework which allows immediate removal of public officials for mismanagement of government funds. In recognition of these measures, four years ago Nicaragua was removed from the “grey list” of countries being monitored by the Financial Action Task Force (the anti-corruption body set up by G7 countries).
Nicaragua’s relative strength can be seen from the table comparing it with its neighbors: despite being the region’s lowest-income country, it fares better than Honduras in productivity, has low debt and the lowest cost of living (using an established international index). Indeed, a prosperous Nicaragua is key to regional stability: it receives 28% of its imports from Central America and contributes 16% of its exports. It is also a recognized bulwark against regional organized crime and drug trafficking.
| Country | Population (million) |
GDP US$ (billion) |
Productivity (GDP/hours worked) |
Percentage debt to GDP |
Cost of living index |
| Costa Rica | 5.1 | 95 | 27.5 | 74 | 52.9 |
| El Salvador | 6.4 | 35 | 11.8 | 59 | 39.6 |
| Guatemala | 19 | 113 | 15 | 29 | 40.4 |
| Honduras | 11 | 37 | 7.8 | 38 | 36.6 |
| Nicaragua | 7 | 20 | 9.3 | 39 | 34.2 |
| Panamá | 4.7 | 86 | 43.6 | 65 | 45.5 |
Source: Data compiled by Tortilla con Sal.
Yet the picture painted here would be unrecognizable to anyone relying on Nicaragua’s right-wing opposition media. One of the best known, Confidencial, has the country’s debt costs so high as to squeeze public budgets, criticizes costly borrowing terms on recent loans and warns of “uncertainty” about Nicaragua’s economy in 2026. In October 2025, right-wing outlet La Prensa warned that Nicaragua’s economy is at risk and has “few options to maneuver.” In fact, as the IMF points out, Nicaragua has recently been repaying debt more quickly that it is taking on new liabilities.
Even so, Nicaragua’s economy could be vulnerable to US attacks or policy changes in three main ways.
First, its exports, which continued to grow in 2025, are heavily dependent on trade with the US despite Trump’s recent tariffs and Nicaragua’s attempts to diversify its markets. When they reach the US border, Nicaraguan products not protected by the regional trade agreement (CAFTA) are subject to an 18% tariff (exemptions include gold, beef and coffee). The IMF notes that many producers have been able to absorb these additional costs and remain competitive, but Washington plans to impose even higher tariffs on some goods in 2027 and higher still in 2028. These hikes in tariffs will apply to Nicaragua but not to its neighbors.
Legislation in the US Congress would, if approved, even threaten Nicaragua with exclusion from the CAFTA treaty, although this would require the agreement of the other member countries. The IMF urges Nicaragua to diversify its export markets more rapidly, to mitigate these threats. Of course, this is exactly what the government is aiming to do.
Second, remittances from Nicaraguans living abroad are a very significant contributor – around a quarter – to Nicaragua’s annual income (the same applies in Honduras and El Salvador). This could change rapidly if migrants now in the US are deported or return to Nicaragua voluntarily in significant numbers. The IMF speculates that the recent growth in remittances was fueled by US-based Nicaraguans, encouraged to migrate by Biden, anticipating they would soon be obliged to “go home” by Trump. This year they also face a 1% tax on the money they send. Even so, after dipping in 2026, the IMF expects remittances to continue to grow.
Third, while the IMF notes that Nicaragua is still eligible for loans from multilateral bodies such as the World Bank, in practice these continue to be blocked by US sanctions. A vital exception is CABEI, the Central America Bank for Economic Integration, which continues to fund projects in Nicaragua despite vigorous attempts by the US to stop it. The IMF indicates that CABEI, together with bilateral loans from China and other countries, will be Nicaragua’s main sources of external funding for future development projects.
The US legislation referred to earlier also calls for Washington to attempt to block further CABEI loans. It is not clear how this could be done, because the US is not a member of CABEI, but if it were successful, it would completely cut off Nicaragua’s access to multilateral funding sources, an extraordinary position for one of the hemisphere’s lowest-income countries.
As well as weathering “multiple shocks” since 2018, the IMF analysis suggests that “strong fundamentals should help Nicaragua withstand headwinds from ongoing shifts in the global policy landscape.” Though expressed diplomatically, this is a clear reference to the Trump administration’s recent threats. It is testimony to the resilience of the Sandinista government and its management of the economy that Nicaragua is well-placed to face them.
Briefs
By Nan McCurdy
Cetacean Fossil Discovered on a Beach in San Juan del Sur
A cetacean (related to whales, dolphins and porpoises) fossil was discovered on Majagual Beach, San Juan del Sur, Rivas. The remains, which are completely mineralized, show 11 visible vertebrae and possible fragments of the skull, and could correspond to a primitive whale that inhabited the region millions of years ago. According to specialists, the animal was stranded and covered by volcanic lava, which allowed for its preservation. Preliminary estimates suggest that it could date back to the Cretaceous period, making it one of the oldest cetaceans ever recorded in Central America. The Cretaceous period is a stage in Earth’s history that occurred between 145 and 66 million years ago, when dinosaurs, the first mammals and birds coexisted. The fossil is located in the Brito Formation, a set of very ancient rocks that formed millions of years ago in southwestern Nicaragua, when the area was covered by the sea. These rocks have preserved the remains of marine animals and sediments that allow scientists to determine how old the fossil is. The Nicaraguan Paleontology team stressed that it is important to protect the site. See photos: https://radiolaprimerisima.com/2026/02/06/descubren-fosil-de-cetaceo-en-una-playa-de-san-juan-del-sur/ (La Primerisima, 6 February 2026)
CABEI Loans for Road Expansion
The Nicaraguan government authorized a US$97 million loan from the Central American Bank for Economic Integration (CABEI) for Section B of the “XI Road Expansion and Improvement Program,” implemented by the Ministry of Transportation and Infrastructure. This financing promotes the expansion of the national road network, which grew from just over 3,000 km before 2007 to 5,518 km in 2025, thanks to an historic investment of more than US$1.4 billion in the 10 previous programs. The XI Program, with a total cost of US$256 million, covers 52.52 km divided into five projects. Section B includes the Estelí bypass (12.02 km) and the expansion of access to the Las Manos border crossing (11.67 km) on the border with Honduras, works that will improve safe mobility, reduce travel times, and relieve congestion in urban and border areas. At the same time, Nicaragua is making progress on key connectivity projects. The Pacific Coastal Highway is being built, with the first phase expected to be completed in mid-2026, connecting beaches and boosting tourism and trade on the coast. In the Southern Caribbean, construction began on the 11 km road between Kukra Hill and Bluefields, vital for connecting to the future deepwater port there, boosting the region’s economic and logistical development. On October 28, 2025, another loan from CABEI was approved for an amount of US$138 million. These funds are used to finance part of the XI Road Expansion and Improvement Program within the framework of the National Plan to Combat Poverty and for Human Development 2022-2026. The XI Road Expansion and Improvement Program seeks to continue strengthening regional integration for safer mobility, reducing travel times and operating costs, as well as alleviating congestion in urban areas such as Managua, Estelí, Diriamba, and Jinotepe. (Informe Pastran, 4 February 2026)
Jaime and Amparo Morales: Examples of Reconciliation
On February 9, Co-President Daniel Ortega spoke of how former Vice President Jaime Morales Carazo and his wife Amparo Vázquez de Morales are proof of what conscience and courage can do. During the ceremony to award the “Cardinal Miguel Obando y Bravo” Medal for Reconciliation and Peace to Jaime Morales and his wife, he said that it took courage at that time [in the 1980s] to be negotiating, because it was dangerous. “Today, in honor of His Eminence Cardinal Miguel Obando y Bravo and the literary genius Rubén Darío… what better tribute than to award the Rubén Darío Order and the Cardinal Miguel Order to a Nicaraguan who has distinguished himself as a promoter in all fields, in the economic field, in the field of education, in the field of literature, and in the field of peace,” Ortega said.
“How many times did we meet [during negotiations]? Until finally, the war came to an end,” he said. [In 1983 Morales became involved with the FDN contras based in Honduras and he later became their chief negotiator in the Sapoa peace process.] “Today I am going to read some facts about Don Jaime’s history as a writer, businessman, politician, director of the Nicaraguan Red Cross, of the Superior Council of Private Enterprise; co-founder of the UCA and his specialty, which is economics, and of the Faculty of Economic and Administrative Sciences, as well as the Central American Institute of Business Administration and the National Institute of Granada. He was deputy to Parlacen, the Central America Parliament, from 2012 to 2017. He was also a columnist for the newspaper La Prensa.” The Co-President emphasized that despite being a man who worked in the economic field, promoting banks and training centers for young people, he began participating in negotiations to end the contra war between 1989 and 1990. He said that Morales was known as a leader of the Contra, which had recognized his abilities and merits and put him in charge, not firing bullets, but thinking and contributing. Ortega recalled that “Cardinal Obando was asked to contribute to this great step toward peace, and the Cardinal was always willing.” He emphasized that Morales was a decisive figure in ultimately reaching agreements and thus ending the war, a war with more than 50,000 deaths.
For his part, former Vice President Morales greeted Co-Presidents Daniel Ortega and Rosario Murillo with genuine affection and recognition. “I want to publicly express our respect and fraternal affection for our dear friend President Ortega and for Rosario, two great leaders of Central America who have been contributing all their efforts to the betterment of our peoples.” He pointed out that “we owe them the peace we are living, which has been one of Daniel’s fundamental objectives, to which I contributed in many ways when I was chief negotiator between the Contras and the Frente.” Morales emphasized that Cardinal Miguel Obando played a fundamental role in this difficult and painful process of negotiation with his prudence and patience. He recalled that “When tempers flared during negotiations, he would say, ‘Guys, don’t you think it’s getting a little hot in here?’ even though it was freezing cold in the mountains, and suggest that they go outside for a refreshing drink. This would cool everyone down and allow them to continue negotiating. Thank you all very much for your presence, and especially to my dearest Commander, who always shows me his affection and trust, affection that has always been there and will be there for life,” See photos: https://radiolaprimerisima.com/2026/02/09/jaime-y-amparo-morales-son-ejemplo-de-reconciliacion-nacional/#google_vignette (La Primerisima, 9 February 2026)
Caribbean Coast Progresses with the Revolution
Municipal authorities in Bluefields and Bilwi highlighted on February 10 the remarkable development achieved on the Caribbean Coast during the second phase of the Revolution. The mayor of Puerto Cabezas, Miguel Abella Watson, affirmed that one of the major projects is undoubtedly the highway, which has connected the North Caribbean Coast with the rest of the country. “It’s a dream come true for many Nicaraguans.” He also referred to the construction of the bridge over the Wawa River, a vital connection for this region of the country. “It has left behind the past, when it took days to travel to other parts of the country. And this has had a significant impact on the economic activity of this municipality. Now, with the highway, there have been other transformations, such as access to electricity and drinking water,” he noted. Abella recalled that the previous system supplied just over 3,000 homes. Currently, a drinking water project is underway that guarantees a water supply to more than 12,000 homes. Likewise, energy was previously generated by a single plant, but as the community grew, difficulties arose. However, thanks to the interconnected grid, we can further promote the development of our communities, he emphasized.
Abella highlighted the progress at the Bilwi Hospital, one of the largest in Central America. “Families used to have to travel to the capital, or León, but today we are one step closer to making that dream a reality. We have a hospital with more than 19 specialties, allowing us to expand the healthcare services that our Indigenous communities demand,” he noted. Abella affirmed that Bilwi has seen growth in its cattle herds, milk production, and agricultural products, in addition to training programs to improve productivity. He emphasized the improved access to communication in the communities. “Today, thanks to all these projects from our government, all of this is possible. Sports are also important to us, with the rehabilitation and improvement of sports infrastructure,” he added. He said that there is now a boost with Minor League Baseball, providing suitable conditions for new talent to emerge. He also mentioned pending challenges, such as solid waste management and street improvements; paving and eliminating dirt roads, ensuring that roads reach tourist sites to strengthen the local economy.
Daniel Zapata, Vice Mayor of Bluefields in the South Caribbean Autonomous Region, also reiterated that new highways have brought significant development to the Caribbean communities. He referred to the region’s tourism and commerce in this regard. Another project underway is the Glorias Costeñas Sports Complex, located on the city’s outskirts. He explained that the construction will last 36 months, and the first phase will be the construction of the Baseball Stadium, which will have a capacity of 4,866 people, featuring natural grass, modern lighting, a giant screen, and other technical amenities. Another planned project is a soccer stadium with a capacity of 1,751 people.
Another very important project for this region of the country is the construction of the Deepwater Port, located between Falso Bluff and Kukra Hill. “Marking a milestone in the history of Bluefields, with an investment of $330 million, it includes the construction of a four-lane highway and a port capable of accommodating deep-draft vessels, facilitating international trade to the Caribbean, South America, and Europe,” he said. The development of these projects has a direct social impact, generating jobs and boosting the local economy. Zapata stated that community-based tourism will continue to be strengthened, with greater support for museums, the new boardwalk in the Punta Fría neighborhood, as well as the construction of a new boardwalk and the Seafood Center. See photos: https://radiolaprimerisima.com/2026/02/10/costa-caribe-progresa-con-revolucion/ (La Primerisima, 10 February 2026)
MINT Launches Portal for Processing Visas Online
The Nicaraguan Ministry of the Interior released information to residents of other nationalities who require a visa to enter Nicaragua, including citizens of the Republic of Cuba who hold ordinary passports: As of this date, the Ministry of the Interior will be processing visa applications online at solicitudes@mint.gob.ni, in accordance with the requirements established by law, and applications may be submitted from anywhere in the world. In the case of citizens of the Republic of Cuba who hold ordinary passports, visas will be free of charge. Once the visa has been approved, the applicant will be notified to go to the nearest Nicaraguan consulate abroad, where the approved visa will be issued. In order to facilitate visa applications, the Ministry of the Interior will soon have an additional space on the online platform where they can also submit their applications. https://tramitesconsulares.mint.gob.ni (La Primerisima, 8 February 2026)
