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 Facts
|Exchange Rate||571.0||-0.57 %||Jan 01|
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Costa Rica Economic News
March 15, 2021
Economic activity slid 4.8% year-on-year in January (December: -5.0% yoy).
March 8, 2021
Consumer prices dropped 0.26% over the previous month in February, swinging from January's 0.18% increase.
February 15, 2021
Economic activity slid 4.7% year-on-year in December (November: -5.3%).
February 5, 2021
Consumer prices increased over the previous month in January, clocking in a 0.18% rise, easing from December’s 0.53% growth.
January 27, 2021
At its meeting on 27 January, the Central Bank of Costa Rica opted to leave the monetary policy rate at its record low of 0.75%, having cut it from 1.25% on 17 June last year.