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Mon Feb 11, 2019, 04:09 PM

Nicaragua facing worst economic meltdown in 30 years

Nicaragua is heading for its worst economic crisis in the last 30 years
February 9, 2019

translated from Spanish

Managua, Feb 9 (EFE) / Luis Felipe Palacios.- The Nicaraguan economy, which contracted 4% last year, is headed for its worst economic crisis of the last 30 years amidst a sociopolitical and humanitarian conflict that has faced to the Government with the private sector and other agents of this impoverished country.

The government of President Daniel Ortega took economic measures, always unpopular, to try to rebuild the economy that, according to the private sector, will cause business closures, more unemployment, more informality in the labor market, growth of the fiscal deficit, and increase in poverty.

This crisis began on April 18 through some social security reforms that were abolished by the Executive after a social explosion that left hundreds dead and detained in protests, and thousands more in exile.

These street demonstrations also ended with the model of alliance and consensus that the Executive maintained with the big capital and the syndicates and that, in the opinion of the private sector, had left "so many fruits and results" to Nicaragua.

Almost ten months after the crisis began, Ortega, without the consent of the private sector, imposed some new modifications to social security that increases the share of companies and employees by 3.5 and 0.75 percentage points, respectively. .

He also presented in the Parliament, controlled by the ruling party, a proposal to reform the Tax Settlement Law, which raises the Income Tax, the Selective Consumption Tax, as well as the income from economic activity, capital and profits, between others, in order to raise funds after the sharp fall in the economy due to the crisis.

The different economic agents, who consider these "tax collection" measures, have warned of a greater economic debacle.

"There are companies that will no longer be able to continue operating," said the president of the Higher Council of Private Enterprise of Nicaragua (Cosep), José Adán Aguerri, who predicted greater unemployment and poverty with these measures.



The Castroist economic cancer just keeps on spreading...

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