Its value from the previous month increased 0.07 percentage points. In turn, the annual change (October 2009 - October 2010) shows the weakest growth this year, 2.9%.
The manufacturing sector is the one explaining, to a greater extent, the slowdown of the overall index. The value of production decreased to levels seen before the economic recovery of the last quarter of 2009. The October inter-annual variation is -1.1%, becoming the second month of contraction in this sector.
The fall of the manufacturing sector shows the high correlation of this sector with foreign demand, as their behavior during the last twelve months is related almost parallel with inventory replenishment of the international economy.
The construction sector showed a slight increase of 0.09% for the first time in 17 months and that could mean a change in the trend of the past year and a half.
The hospitality sector in October showed the highest growth with 4.6%, despite a slight decline in its index.
Agriculture, transportation and business services continued a healthy growth.
Although the overall level of activity stagnated in October, it continues to be consistent with the growth target of 4% of GDP set by the Central Bank of Costa Rica (BCCR).
However, growth and economic activity remain moderate, without implying pressure on inflation by way of adequate domestic demand and further declines in interest rates. That is, lower interest rates, monetary aggregates growing at the rate of nominal production and a more competitive exchange rate, would provide a helping hand to economic growth.
Costa Rica's economic activity continues to grow at very low rates.
An Aldesa analysis on the subject indicates that during February, the economy grew just 0.09%, resulting in a variation (February 2010 - February 2011) of 2.4%, according to the Monthly Economic Activity Index (MIEA).
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