The year-on-year decrease was explained by the smaller area effectively built in the four construction destinations: residential -43.5%, commerce -61.4%, service -52.1% and industry -82.0%, explains a report by the Central Bank of Nicaragua (BCN).

Archive photo By Rhonda Urbanczyk, US Embassy in Nicaragua

The BCN document reviews that “… By geographical area, the area actually built in Managua registered a 60.9 percent decrease, and in the rest of cities, the reduction was 34.1 percent. On the other hand, the underlying variation, measured by the cycle-trend series, registered a 13.7% year-on-year decrease (-12.3% in the third quarter of 2018).

In the fourth quarter, the effectively constructed area of social housing totaled 30,062 square meters of construction, 5.9 percent lower than the previous quarter (31,954 m2). With this result, the decrease, compared to the fourth quarter of 2017, was 46.9 percent and 31.3 percent on annual average.

In the residential destination, a homogeneous behavior by geographical area was observed. In Managua, there was a 59.5 percent decrease as a result of less effectively constructed area in the four stages of construction: new, in process, completed and restarted. Similarly, in the rest of the cities a 25.6$ decrease was observed.”

See full report.