Home Construction Shrinks in Nicaragua

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The number of finished homes in Nicaragua fell 17.7 percent during the first quarter of 2013 compared to last year, with a slower-paced increase in private construction, according to the latest data from the National Bank of Nicaragua. 

In Managua, the country's capital, the number of finished homes fell 21.7 percent during the time period, while decreasing 4.4 percent in the rest of the country, El Nuevo Diario reports.

"This contraction could be a result of the decrease in subsidy of (interest) rate to social housing during the last months of the year," the bank said in a release. 

During the first quarter, a total of 1,823 new homes were built, with the majority (1,342) built in Managua. 

Private construction increased 12.7 percent during the first quarter, a slower pace than the 55 percent the country reported last year, according to the paper. 

Despite the new figures, some remain optimistic in the industry. 

"Central Bank statistics as are usually delayed statistics," the president of the Builders Chamber of Nicaragua Ricardo Meléndez told the paper. "We're going at a good pace, we do not have bad signs for home purchase or construction." 

Meanwhile, the bank reported a 3.2 yearly increase in economic activity for the construction sector during the first quarter, compared to a 14.9 increase during the previous quarter.