Nicaragua's economy expanded by 3.8% in the January–August period, according to the Monthly Economic Activity Index (IMAE) published by the Central Bank of Nicaragua (BCN). The figure was lower than the 3.9% recorded through July and the 4.1% seen in the same period of 2025, pointing to a gradual slowdown in the pace of expansion.
- Accumulated growth: the IMAE rose 3.8% through August, below the 3.9% of July and the 4.1% of the same period in 2025.
- August performance: activity increased 3.2%, above July's 2.4% but well under the 5.9% posted in the same month a year earlier.
- Declining sectors: agriculture fell 4.7% in August and manufacturing 4.5%, with accumulated declines of 3% and 4.7%, respectively.
- Drivers of growth: construction, commerce, hotels and restaurants, mining, livestock and energy and water all posted gains.
Agriculture and manufacturing weigh on the result
Agriculture contracted 4.7% in August and accumulated a 3% decline for the year to date. The BCN linked this to the impact of El Niño and a reduction in harvest activities. The sharpest drops were in coffee, sugarcane, soybeans and peanuts, while higher bean and rice production partially offset the fall.
Manufacturing also ended in negative territory: it fell 4.5% in August and accumulated a 4.7% reduction. Lower output of textiles and automotive harnesses explained much of the result. Increased production of food products—meat, dairy and oil—as well as tobacco and petroleum derivatives moderated the sector's decline.
Construction, mining and services sustain growth
Construction was among the most dynamic sectors: it grew 6% in August and accumulated a 19.5% rise between January and August. The BCN attributed this performance to greater production of materials such as sand, quarry stone, crushed stone, asphalt, steel, ready-mix concrete and wood.
Mining and quarrying advanced 9.8% in August and 5.5% in the accumulated period. Extraction of gold, silver, quarry stone, concrete, crushed stone, select material, gypsum and pumice was among the factors behind the result. Revenue from raw gold exports reached USD 1,994.3 million through August, above the USD 1,971 million reported for all of 2025, and could exceed USD 2,000 million by year-end.
Livestock grew 6.2% in August and accumulated the same percentage, driven by higher cattle and poultry slaughter and increases in milk and egg production. Lower exports of live cattle and reduced pork slaughter partially offset that gain.
In services, hotels and restaurants accumulated growth of 9.2% and commerce expanded 9.5% over the same period. Financial intermediation rose 3.4% compared with August of the previous year and accumulated 4.5%, thanks to higher credit disbursements and an increase in deposits in both local and foreign currency. Transport and communications grew 3.7% in August and 4.8% in the accumulated period, with transport up 2.2% and communications up 6.5%.
Energy, fishing and the external outlook
Energy and water posted the largest monthly jump: 21.7% in August and 7.5% accumulated. Electricity generation grew 23%, driven by higher thermoelectric and wind output, while water and sewerage supply rose 9.1%.
Fishing and aquaculture increased 1.7% in August on higher farmed shrimp and lobster catches, though it maintained an accumulated decline of 8.3% due to lower catches of scaled fish, coastal shrimp and other aquatic products.
The International Monetary Fund projected that Nicaragua's Gross Domestic Product will expand 3.8% by year-end, a forecast below the 4.2% average growth estimated for Central America.
The picture left by the IMAE through August is of a two-speed economy: services, construction and mining are offsetting the poor performance of agriculture and manufacturing. With four months still to be counted, the evolution of gold exports and the behavior of the harvest will determine whether the country can sustain the annual pace anticipated by the IMF or whether the slowdown observed in recent months will deepen.