Costa Rica: Inflation Not Caused by Growth

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

Friday, November 12, 2010

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.

On an annual basis, the variation of IMAE is 4.17%, consistent with GDP growth of 4% expected this year by the Central Bank of Costa Rica (BCCR).

Agriculture, trade and transport are the sectors which are growing at annual rates higher than what shows in the overall index.

More importantly, the manufacturing sector appears to have stabilized their rate of decline. On a quarterly basis, the slowdown in manufacturing sector was 5.6% in the first quarter, while in the third the drop was 0.8%.

For the construction sector, the slowdown in the first quarter is nearly three times the slowdown shown in September. Although the pace of decline is much slower, this sector has yearly contractions of 6%.

The other sector with growth rates below zero, apart from manufacturing and construction, is the removal of soils, where most of the decline is caused by its strong relationship with the construction sector.

The hospitality sector has rebounded on its annual growth rate, which is important considering that September is not yet a high season month.

The rate observed at IMAE gives credibility to the growth goal estimated by the BCCR, considering also that there should not be inflationary pressures towards the end of the year.

It is also important to note that the moderate pace of economic growth implies more room for further reductions in interest rates, since there are no inflation risks other than increases in the price of oil or regulated goods.

In addition, one must also consider that there are incentives by investing in Colones, which discourages domestic investment and credit recovery.

Market Intelligence

Everything about exports and imports in Costa Rica.

Top companies - Quantities, amounts and prices.

more info

More on this topic

Costa Rica: Economic Activity Continues to Decline

May 2015

For the eleventh consecutive month economic activity continued to lose strength, recording in April a growth rate of just 1.68% compared to the same month in 2014.

From a statement issued by the Central Bank of Costa Rica (BCCR):

In the first quarter of 2015 (I-trim-15); the country's production, measured by the cycle trend of the Monthly Economic Activity Index (IMAE), recorded an average variation of 2.0%, lower by 1.7 percentage points (pp) than the figures observed in the same period in 2014.

Costa Rica: Activity Falls Due to Less Domestic Demand

March 2015

The Central Bank has confirmed the decline in domestic demand mainly in agriculture, trade, hotels and restaurants, and transport and storage.

From a statement issued by the Central Bank of Costa Rica (BCCR):

The country's economic activity, measured by the cycle trend of the Monthly Index of Economic Activity (IMAE), recorded a variation of 2.9% in January 2015, 0.4% lower than that observed a year earlier when production grew by 3.3% and 0.7% lower than the average growth of the indicator in 2014 (3.5%).

Nicaragua: Economic Situation Report Fourth Quarter

December 2014

The report highlights that the economic slowdown that had been observed in the year seems to have stopped in September and that the pace of overall economic activity exceeds that of other countries in the region.  

From a statement issued by the Nicaraguan Foundation for Economic and Social Development (FUNIDES):

Economic Status of Costa Rica, August 2010

August 2010

Aldesa highlights a significant weakening in economic activity, a downward trend in inflation and a growing fiscal deficit.

Significant Weakening in Costa Rica's IMAE

The Monthly Index of Economic Activity (IMAE in Spanish) for June closed 2.96% up year-on-year. After reaching a high of 6.09% in February growth has slowed.

 close (x)

Receive more news about Economics

Suscribe FOR FREE to CentralAmericaDATA EXPRESS.
The most important news of Central America, every day.

Type in your e-mail address:

* Al suscribirse, estará aceptando los terminos y condiciones

Looking for Importers and distributors of furniture

Mexican manufacturer of office furniture seeks importers and distributors interested in dealing their products in Central America.
PM Steele is a 100% Mexican company,...

Stock Indexes

(Apr 6)
Dow Jones
S&P 500


(Nov 19)
Brent Crude Oil
Coffee "C"