Nicaragua - Balance of payments

An adverse balance of trade with Nicaragua's major trading partners is the major factor in its deficit. Incoming capital in the form of public and private loans, as well as foreign capital investment and tourism, traditionally offset amortization and interest payments abroad. The current account balance sustained a deficit averaging 30% of GDP throughout the 1990s.

The US Central Intelligence Agency (CIA) reports that in 2001 the purchasing power parity of Nicaragua's exports was $609.5 million while imports totaled $1.6 billion resulting in a trade deficit of $990.5 million.

The International Monetary Fund (IMF) reports that in 2001 Nicaragua had exports of goods totaling $602 million and imports totaling $1.63 billion. The services credit totaled $332 million and debit $354 million. The following table summarizes Nicaragua's balance of payments as reported by the IMF for 2001 in millions of US dollars.


Current Account -561
Balance on goods -1,028
Balance on services -22
Balance on income -249
Current transfers 737
Capital Account
Financial Account 40
Direct investment abroad
Direct investment in Nicaragua 132
Portfolio investment assets
Portfolio investment liabilities
Other investment assets -60
Other investment liabilities -32
Net Errors and Omissions -13
Reserves and Related Items 534

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