Even though economic activity dropped at a lower pace, Costa Rica's economy is still in recession.
Moderation in the contraction rate of the Monthly Economic Activity Index (IMAE) - Economic activity in Costa Rica is still contracting when compared to last year's levels, even though the pace has reduced in the last months. In May, IMAE registered a drop of 3.61% when compared to May 2008, but the largest 12-month drop of this indicator was recorded in February, at 5.5%....
Inflation deceleration and Risks to economic recovery.
The quarterly report from the Executive Secretary of the Central American Monetary Council (SECMCA) focuses on the region's inflation and recovery prospects.
Inflation, measured by year-on-year change in consumer prices, slowed in the second quarter of 2010 to 4.9%, compared to 2.9% in June 2009. This level is within the target limits set by the region's central banks.
Moderated reduction in IMAE, drop in international reserves, pressure on the exchange rate and a worsening fiscal situation.
Costa Rican Economy Still in Recession
An improvement in economic activity has been observed in the second trimester. From April to June, the Monthly Index of Economic Activity (IMAE), recorded an annualized growth rate of 5.9%, while it had contracted at an annualized pace of -0.9% in the first trimester.
Inflation, Economic Growth, Trade, Fiscal Sector and the Monetary Sector.
Regional inflation has considerably decelerated in the past quarters, as a result of the application of a series of prudent monetary policy measures, and some exogenous factors related to the abrupt deceleration of the global economy.
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