Consumer durables is a cataloguing of consumer goods that are not essential to be bought very often as they are fashioned in a way so as to last for an extended period of time. Profits in the consumer durables sector were most profoundly…
BMI View: The short-term outlook for Nicaragua's construction sector is positive. A number of transport
projects are making progress, supported by regional development financing. A sharp slowdown in the
residential sector is however, weighing on growth, and major projects in the energy infrastructure sector
shave been subject to significant delays, further dampening prospects and resulting in much slower growth
in 2016 against 2015.
? Nicaragua has historically been heavily reliant on external funding from neighbours such as Venezuela
and Brazil to support infrastructure projects. The economic and political crisis in Venezuela will result in
a reduction in fiscal support to Nicaragua, curtailing the government's public spending plans, while
Brazil's corruption scandals are hampering various power projects.
? Without significant progress in the Nicaragua Canal project and in light of widespread opposition to the
canal and escalating legal challenges, we continue to withhold this project from our forecasts. As such,
we maintain our expectations for 7.3% growth in construction industry value in 2016, followed by slower
growth of 2.6% annually between 2017 and 2025.