National Debt (% of GDP): Nicaragua

Analysis# Nicaragua National Debt (% of GDP) Nicaragua's national debt stood at 40.1% of GDP in 2026, representing a dramatic recovery from its catastrophic 110.4% peak in 2002. The country has reduced its debt burden by 53.6% since 1997, though current levels remain well above the 26% low achieved in 2008. The fiscal trajectory reflects decades of consolidation following early-2000s economic instability. Recent years reveal shifting momentum. Between 2017 and 2020, debt climbed sharply from 34.7% to 49.2%, driven by pandemic pressures and economic contraction. Since 2020, Nicaragua has stabilized and gradually reduced this burden, declining to 40.1% by 2026. Projections suggest continued modest improvement, positioning debt levels within a sustainable mid-range after nearly two decades of structural adjustment.