Nicaragua economy slips in April

Representing a first indicator of the economic impact of ongoing unrest in Nicaragua, the central bank released the monthly economic activity index (IMAE) for April with figures adjusted for seasonality showing a 2.4% decline from March 2018.

In original terms, April IMAE registered year-on-year growth (a proxy for annual GDP) of 4.5%.

With half of April mired in protests and violence, a slowdown is to be expected. In a May 21 statement, central bank president Ovidio Reyes cut the bank's GDP growth outlook for 2018 to between 3.5% and 4.5% from 4.5%-5.0%.

Nonetheless, the April IMAE report presented strong figures in sectors such as mining and quarrying activities, agriculture and livestock, with declines in fishing and aquaculture and in forestry and wood extraction.

The civil unrest has resulted in multiple barricades across the country, blocking trade, which has already had an effect on intra-region trade in Central America.

Crackdown in Masaya

Further violence was unleashed Tuesday as government forces attempted to retake control in the western district of Masaya, where opposition groups have begun to organize resistance and installed multiple roadblocks.

Regional news outlet El Economista indicated that military officers dressed as police carried out "selective attacks" in Masaya, where they burned down a hotel, after arresting about 20 women protesting with pots, according to Nicaraguan human rights association ANPDH.

"They are soldiers dressed as policemen, they are paramilitaries, those who are making selective attacks, after [the] massacre in Masaya," ANPDH president Álvaro Leiva was cited in El Economista.

The report added that at least six people died in Tuesday's attacks and more than 40 by the "combined forces" of Daniel Ortega's government, which include policemen, riot police, hooded gang members and soldiers in civilian or police uniforms, according to Leiva.

The ANDPH estimates that in the last two months about 180 have been killed.

"Faced with this disproportionate and not comparable in strength, citizens mount physical resistance within their means because they have to protect their lives," said Leiva, as reported in Honduran outlet La Prensa.

La Prensa also reported that bishops have called off the official peace dialogue, which had only restarted Friday, adding that they would reconvene the process once the government invites key human rights organizations and they confirm participation.

Pictured: A member of the anti-Ortega "April 19" movement fires a hand-made mortar, after leaders of the movement offered a press conference in Masaya, about 40km from Managua on June 18. Students and rights activists reaffirmed during the conference that their struggle is peaceful and civic and called on the army to not get involved.