Central America

Moody’s warns that Nicaragua’s economy is likely to remain in a recession

The risk rating agency Moody’s said that the Coronavirus pandemic has weakened the Central American countries’ earnings and substantially increased their deficits. However, despite that scenario, it expects an economic growth for the isthmus in 2021. Except for Nicaragua.

“The pandemic pushed the region into an acute economic recession in 2020, but it should rebound in 2021, for all countries except Nicaragua,” the agency said. In Nicaragua’s case, we should remember that last year, in February; it introduced a strong fiscal reform to deal with the decreasing income caused by the 2018 socio-political crisis.

Meanwhile, this new scenario has prompted many countries in the region to relax their tax laws as a temporary measure. However, Daniel Ortega’s regime did not support this initiative.

According to Moody’s, Nicaragua’s GDP will decrease by 4% or more. The World Bank forecasts a 6.3% reduction in Nicaragua’s economy, and the IMF expects a 6% drop.

Central America

Mass deportations begin: Central American migrants face unemployment and despair

Migrants from Guatemala, El Salvador, Honduras, and Nicaragua account for 38% of all individuals with deportation orders from the United States. If Donald Trump’s mass deportation plan is fully executed, more than 200,000 Central Americans could be sent back to their home countries in 2025 alone.

But are these governments prepared to receive them and withstand the economic blow of reduced remittances?

“Look at my wrists. They put the shackles so tight, all the way down,” described a Salvadoran migrant, recounting his harsh repatriation journey in late January. He was on one of the first deportation flights under Trump’s second term.

“I have nothing—no money, no job, none of the opportunities I dreamed of,” expressed a Honduran migrant, who was forcibly returned to his country in early 2025.

These testimonies, documented by Central American media, paint a picture of desperation and uncertainty among recent deportees.

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During his campaign, President Trump vowed to carry out “the largest mass deportation in history”. Since his return to the White House, images of deported migrants have dominated official channels, underscoring the high priority of this policy on his administration’s agenda.

Central America

Nicaragua rejects UN Human Rights Council following calls for ICJ Action

The government of Daniel Ortega announced on Thursday that Nicaragua is withdrawing from all activities related to the United Nations Human Rights Council. The decision comes after a report by the UN-appointed Group of Human Rights Experts on Nicaragua, which urged the International Court of Justice (ICJ) to take action against the country for revoking the nationality of Nicaraguan citizens.

“Nicaragua conveys its sovereign and irrevocable decision to withdraw from the Human Rights Council and from all activities related to this Council and its associated mechanisms,” said Vice President Rosario Murillo, speaking through official state media.

Central America

Panama may cancel Chinese port contract as Trump threatens to ‘retake’ canal

Panama’s Attorney General’s Office has recommended annulling the 1997 concession granted to a Chinese company to operate two key ports at the entrances of the Panama Canal, citing constitutional violations. The move comes as U.S. President Donald Trump threatens to “retake” the waterway, claiming it is under Beijing’s control.

The request was made by Panama’s Chief Prosecutor, Luis Carlos Gómez, to the Supreme Court, which is currently reviewing two legal challenges against the concession contract awarded to Panama Ports Company, a subsidiary of Hong Kong-based Hutchison Holdings.

At the same time, the company is facing an audit by Panama’s Comptroller’s Office to determine whether it has fulfilled its financial obligations to the government.

According to Gómez, the contract is “unconstitutional”, and he has urged the court to invalidate it. In a document obtained by AFP, he argues that the agreement violates 15 articles of the Panamanian Constitution, as it “improperly transferred exclusive state rights, impacting social and public interests.”

Additionally, Gómez claims that the contract undermines free competition, grants unjustified tax exemptions, and that the automatic 25-year renewal in 2021 was agreed upon under unfair conditions for the public interest.

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The lawsuits seek to void the contract that allows Panama Ports Company to operate the Balboa and Cristóbal ports, located at the Pacific and Atlantic entrances of the canal, respectively. The plaintiffs argue that the company has evaded taxes and received illegal benefits in violation of the Constitution.

The legal battle unfolds as Trump raises concerns over China’s influence in the canal, which the U.S. built and operated until its handover to Panama in 1999. Trump has hinted at taking back control of the waterway, despite the fact that it is managed by an independent Panamanian authority.

Washington sees the presence of a Chinese company at the canal’s entry points as a national security risk, even though both the U.S. and China are the top users of the strategic trade route. The canal, which handles 5% of global maritime trade, underwent a major expansion in 2016 to accommodate larger vessels.