Nicaragua cuts growth outlook

Nicaragua's central bank cut its economic growth outlook on Monday and raised its inflation forecast due to a drought that has hurt crops and pushed up food costs, and that also spurred the government to propose spending cuts.

The central bank now expects growth in gross domestic product to be between 4 and 4.5 percent in 2014, central bank Governor Ovidio Reyes said, down from the 4.5 to 5 percent the bank forecast in April.

The economy of Nicaragua, Central America's most impoverished nation, grew 4.6 percent last year.

Source: Reuters