Economic Growth Expectations Downwards

For the Central Bank of Costa Rica, the projection of growth in production, which for this year is 3.2%, should be reviewed downward, because of the evolution that has shown the economic activity during the first half.

Wednesday, July 10, 2019

Considering the shocks that have affected national production so far in 2019, it is likely that this year economic growth will be below the 3.2% projected in the 2019-2020 Macroeconomic Program last January, explains the most recent report of the Central Bank of Costa Rica (BCCR).

For the BCCR the year-on-year variation of the Monthly Index of Economic Activity (MIEA) in April 2019 was explained in 80% by manufacturing and business services, education, health and financial. Compared to the same month in 2018, most economic activities moderated their growth and even the agricultural, construction and trade industries showed a fall.

You may be interested in “How to Deal with the Economic Slowdown?” and "Costa Rica: Production Keeps Falling”.

Not only will the BCCR review its projections, as José Antonio Cordero, director of the Instituto de Investigaciones en Ciencias Económicas (IICE), in an interview indicated to Nacion.com that "... in January the growth projection of this center for 2019 was between 2.75% and 3.25%. We have a preliminary revised projection of a range of between 1.9% and 2.3%'."

Economist Francisco de Paula Gutiérrez said that "... The manifestations in terms of employment of the monthly index of economic activity; the concern of the Central Bank reiterated when it takes decisions to reduce the rate of monetary policy, to reduce the reserves, makes us anticipate that this economy is growing at a much slower pace than we expected in December."

See BCCR report.

Do you need to keep track of the key economic indicators in Central America?

Request more information about our Regional Economic Monitor.

Name:

Last Name:

Company:

Title:

Phone:

Email:

Comments:

More on this topic

Honduras: Economic Expectations Not Improving

August 2019

In July, the Confidence Index of Economic Activity registered a 17% drop with respect to May, where again 49% is explained by the result of the current confidence index and 51% by future activity.

The consulted ones indicated that the potential negative impact of the unfavorable external conditions and the fall of prices of some products of exportation in the evolution of the national economy, as well as aspects related to the climate of businesses and its incidence in the new investments, informed the Central Bank of Honduras (BCH).

Economy: Predictions Reserved for the Region

July 2019

The outlook for some economies in the region for 2019 is not the best: in Nicaragua GDP is expected to fall between 5% and 7%, while in Costa Rica the growth estimate at the end of the year was reduced from 3.2% to 2.2%.

The estimates of the Nicaraguan Foundation for Economic and Social Development (Funides), presented in its "Informe de Coyuntura - Julio 2019", indicate that by 2019 an economic contraction of between 5.4% and 6.8% will be reported in the country.

Costa Rica's Economy Grows by 7%

July 2012

Driven by exports from free zones and stable prices, the country's growth has exceeded all expectations.

The main exports were from the electronics industry, represented mainly by Intel. Foreign sales from this sector increased by 43% in the first 6 months of 2012 compared with the same period last year, and contributed more than 25% to the total export growth.

Costa Rica: Household Spending Continues to Grow

October 2011

Between January and July the Gross Domestic Product (GDP) grew by 3.8% compared to the same period in 2010.

According to a report by Aldesa :

In terms of components, final household spending remains strong, growing by 4.8% in the indicated period and keeping in line with the expectations of the Central Bank of Costa Rica (BCCR), which estimates that domestic demand this year will be main driver of economic activity.

 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


Gluten-free food business for sale

Operating Company dedicated to the manufacture of gluten-free and sugar-free products, OHNE brand.
The OHNE brand has 8 product lines: square bread, sweet...

Stock Indexes

(Apr 6)
Dow Jones
-5.60%
S&P 500
-5.10%
Nasdaq
-5.64%

Commodities

(Oct 23)
Brent Crude Oil
59.24
Coffee "C"
102.3
Gold
1,492
Silver
17.495