MEXICO CITY/MANAGUA (Reuters) – Some of Mexico’s largest companies operating in Nicaragua are counting the costs of a political crisis engulfing the Central American country since violent protests against President Daniel Ortega erupted in April last year.
The demonstrations, in which more than 300 people have died, have hit Nicaragua’s fragile economy hard. Gross domestic product shrank by 3.8% in 2018, and the World Bank said in April economists expected the slump to deepen this year.
Mexico - Companies - Cement - Maker - Cemex
Three of Mexico’s top companies – cement maker Cemex , bottler Coca-Cola FEMSA and telecoms company America Movil – said in reporting their second quarter results that their operations in Nicaragua had suffered. Mexico’s results season ended on Friday.
Cemex Latam Holdings said its Nicaragua business was being hurt by a downturn in the construction sector, which shrank 21% in 2018, according to central bank data.
Crisis - Activity - Demand - Cement - Cemex
“The crisis remains unresolved and continues to affect economic activity, including demand for cement,” the Cemex subsidiary said in second quarter results, without giving details.
Coca-Cola FEMSA reported a drop in its local business since the first quarter.
Nicaragua - Environment - Constantino - Spas - Company
“Nicaragua is still a challenging environment to operate in,” Constantino Spas, the company’s chief financial...
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