Costa Rica Economic Outlook
November 10, 2020The economic panorama likely remained downbeat in Q3 due to the ongoing health crisis. Economic activity contracted at a sharper pace in July–August, while the unemployment rate remained high in the same period. More positively, however, exports recovered and imports fell at a softer pace in Q3. Turning to Q4, further restrictions have been eased, with air borders reopening to all countries on 1 November—without the need for a 14-day quarantine upon arrival nor proof of a negative coronavirus test —aiming to boost tourism and employment in the sector. However, this could lead to an increase in Covid-19 cases, which continued to rise in the country through September and October. In other news, in late October, the government modified the 2021 draft budget to include a 7.5% reduction in primary spending compared to 2020, in an attempt to control public expenditure.
Costa Rica Economic GrowthThe economy is expected to slowly recover in 2021, after this year’s pandemic-induced contraction. However, the country faces many downside risks, including weakened government finances to face maturing debt, social unrest due to the proposed measures to try to secure a USD 1.75 billion IMF loan, and uncertainty over the course of the pandemic. FocusEconomics panelists see GDP expanding 3.3% in 2021, which is up 0.3 percentage points from last month’s forecast, and 3.5% in 2022.
Costa Rica Economy Data
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Costa Rica Economic News
June 17, 2021
At its 16 June meeting, the Central Bank of Costa Rica decided to once again leave the monetary policy rate unchanged at its record low of 0.75%, where it has been since 17 June 2020.
June 11, 2021
Economic activity gained further traction in April, expanding at a multi-decade high pace of 8.8% in annual terms—albeit partly due to a low base effect—accelerating from March’s 2.5% rise. Looking at the details of the release, April’s upturn was broad-based.
June 7, 2021
Consumer prices decreased 0.01% over the previous month in May, swinging from the 0.29% increase logged in April.
May 12, 2021
Economic activity expanded for the first time in 13 months in March, growing 3.9% in annual terms, swinging from February’s 4.5% contraction.
May 7, 2021
Consumer prices increased 0.29% over the previous month in April, accelerating from the 0.03% rise logged in March.