Central bank of Costa Rica foresees improvement in the economy for 2009
The president of the Central Bank, Francisco de Paula Gutiérrez, stated that the restrictive measures enforced by the bank will begin to bear fruit in 2009.
Friday, August 1, 2008
The restrictions that were cited include less currency, tighter loan requirements, higher interest rates and the increase in the price of the dollar. The President reiterated that they will continue to apply the inflation targeting system, and set a target of 9%.
Between August and September expectations by Costa Ricans regarding the behavior of prices for the next 12 months increased from 6.5% to 6.8%.
A survey of economic forecasts shows that the average inflation rate expected for Costa Rica over the next 12 months is 11.7 per cent. A currency devaluation of 3.5 percent is also expected.
Inflation in Costa Rica is now running at more than twice the base lending rate, leaving savers with negative yields in real terms.
“Program implementation has been strong, despite challenging external conditions and a slow economic recovery. The public debt-to-GDP ratio has stabilized, and financial stability has been maintained."
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