The economic impact of the FSLN’s return to power has been surprising,
considering the leftist revolutionary party’s history. Ortega’s scorn
for “neoliberal imperialism” and “global capitalism’s tyrannical
dictatorship” recalls the Sandinista revolutionary government, which
presided over a severe crisis in the 1980s as a result of its aggressive
non-market policies. Ortega’s management of Nicaragua’s economy since
2007, however, reveals a drift from the revolution’s guiding principles
towards a much more pragmatic approach.
Under Ortega, GDP has increased by 74 percent from $6.78 billion in 2006
to $11.8 billion in 2014, with GDP per capita increasing by more than
50% between 2006 and 2013 (1,228.30 to 1,851.11 USD). Additionally,
poverty rates fell from 48.3% in 2005 to 29.6% in 2014. Strong levels of
growth in the agricultural, construction, and manufacturing sectors have
taken place over the recent years. To top things off, annual levels of
inflation, measured by CPI, have decreased from 20% in 2008 to 4% in
2015 according to theWorld Bank
<http://data.worldbank.org/country/nicaragua#cp_wdi>.
This positive macroeconomic outlook has been partly a result of
pro-business measures that have led foreign investment to increase by a
compound annual growth rate of 22% between 2005 and 2014. The country’s
crawling exchange rate peg to the US dollar, which allows for currency
stability and a slow devaluation that helps the export sector, has
coupled with stable stocks of international reserves to facilitate
growth. Lastly, Ortega’s government has shown considerable budgetary
discipline, with the fiscal balance floating between 0.1% and -1.4% in
the 2011-2015 period.
https://www.thedialogue.org/blogs/2016/06/the-economy-vs-democracy-in-ortegas-nicaragua/
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