Costa Rican Economy Remains in Crisis

During February 2021, economic activity fell 4.7% in year-on-year terms, a drop that evidences that the economic crisis caused by the covid-19 outbreak continues to affect Costa Rica.

Monday, April 12, 2021

According to the Central Bank of Costa Rica (BCCR), as per the cycle trend series of the Monthly Index of Economic Activity (IMAE), the inter-annual variation of production reached its lowest point in June 2020, at which point it began a gradual recovery process.

Check out the "System for monitoring markets and the economic situation in Central American countries", prepared by CentralAmericaData.

The report explains that in February 2021, the production of most economic activities decreased in year-on-year terms. However, a positive variation was observed in some activities, such as mining and quarrying (2%), manufacturing (2.4%), information and communications (1.7%) and education and health services (0.1%).

The greatest impact on production persists in tourism-related activities. For example, hotel and restaurant services decreased by 50.6% and transportation services by 20.8%, the document highlights.

The report notes that "... agricultural activity decreased 2%, due to lower banana and pineapple production, associated with lower external demand. Manufacturing recorded a year-on-year increase of 2.4%, attributed to the growth of this activity in the special regimes (15.8%), the detail of which is mentioned below. Construction decreased 8.1%, so the contraction that began in December 2018 persists."

See full document and statistics.



More on this topic

Economic Activity Begins 2021 on a Downward Trend

March 2021

During January of this year, production in Costa Rica decreased 4.8% in year-on-year terms, a decline that is explained by the economic crisis resulting from the pandemic caused by the outbreak of covid-19.

In January 2021, the production of manufacturing and computer services grew 1.9% and 0.7%, respectively, in year-on-year terms.

Costa Rican Economy Slowly Recovers

November 2020

After the IMAE reported year-on-year variations of -9% and -8%, respectively, in July and August, during September the Costa Rican economy continued to recover from the impact of the health crisis by reporting a 6% drop in production.

The Central Bank of Costa Rica (BCCR) reported that the economy is in the process of recovery, as a result of the process of reopening and gradual lifting of sanitary restrictions, which were imposed following the outbreak of covid-19. However, the upturn so far is not enough to fully recover the loss in production of the previous quarter, so the level of activity is still lower than in the last quarter of 2019.

Economic Activity: Slight Improvement in Costa Rica

October 2020

In the context of the crisis generated by the outbreak of covid-19 and after reporting a -9% year-on-year variation in July, in August the IMAE registered a smaller reduction by contracting 8% compared to the same month in 2019.

The fall in the volume of production is greater in the activities of hotels and restaurants (59.3%), transport and storage (27.4%) and trade (15.5%), all of which is closely related to the greater incidence in these sectors of national and international restrictions on the movement of people and goods, reported the Central Bank of Costa Rica (BCCR).

Costa Rica: Economic Activity Still Down

September 2020

After reporting in June a 7% year-on-year variation, in July the monthly index of economic activity continued to fall, registering an 8% drop with respect to the same month in 2019, a decrease that is explained by the economic crisis affecting the country.

The lower activity, which is due to the impact that the pandemic has had in Costa Rica and around the world, is seen in the five major economic activities (agriculture, manufacturing, construction, trade and services) that make up the monthly index of economic activity (IMAE).

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