Remittances strengthen Ortega’s position in Nicaragua

Significance

The situation comes amid increasing authoritarianism in Nicaragua and suggests that Nicaraguans who have fled political persecution may be inadvertently helping to prop up President Daniel Ortega’s government in the face of deepening international isolation.

Impacts

• Nicaragua’s economy will grow in the medium term and its fiscal position will continue to strengthen.
• Ortega will continue to repress the opposition and strengthen his grip on institutions.
• Ortega’s weaponisation of migrants may encourage Washington and its allies to reconsider sanctions policies.