Costa Rica: Economic Activity Could be Better

The Monthly Economic Activity Index, which reflects the performance of the economy, showed minimal growth during October.

Monday, December 13, 2010


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.

More on this topic

Costa Rica: Construction and Services Sectors Boost Economy

October 2011

In August national economic activity, as measured by the IMAE, showed the smallest monthly increase since May last year, barely increasing by 0.7% on an annualized basis.

According to analysis by Aldesa:

Between August 2010 and September of this year, activity advanced at a rate of 3.7% and the average variation was 3.7% lower for the tenth consecutive month.

Costa Rica: Inflation Not Caused by Growth

November 2010

The variation of IMAE in September was 3.08%, highlighting the slowdown trend observed since February.

February was the month which recorded the highest figure of the year: 6.30%.

However, this indicator has been declining significantly and is converging to the values observed (3.08%) since June of this year, indicating a significant stabilization.

Decrease in Economic Activity in Costa Rica

June 2013

The value of production fell in March and April, the first decline in the index's level from May and June 2012.

From a report on the Blog Pulso Bursáti by Aldesa:

The Monthly Index of Economic Activity (MIEA) shows that the value of production fell in March and April, which is the first decline in the index's level from May and June 2012.

Economic Activity in Costa Rica Stalled

March 2011

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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