Costa Rica Economic Outlook
May 14, 2019The economy seemingly performed poorly in the first quarter, after large public protests related to now-approved fiscal policy reform caused growth to slump to a nearly six-year low in Q4 2018. Growth in economic activity was limp in January–March, supported by expansions in the services and construction sectors, but weighed on by the agricultural sector, which was affected by a drought caused by the El Niño effect. Meanwhile, the unemployment rate ticked down in Q1 from Q4, although it remained higher than in the same quarter a year earlier. On 15 April, the IMF called for the “full and timely” implementation of the fiscal reform approved late last year. This includes swapping the old general sales tax with a value-added tax in July this year, in order to “rebuild fiscal space to manage potential shocks”.
Costa Rica Economic GrowthStronger fixed investment growth on the back of a more certain fiscal outlook should lead to an uptick in economic growth this year. In addition, strong export growth linked to a weaker colón and February’s opening of a large industrial port in Limón should further drive economic momentum. Ongoing instability in neighboring Nicaragua, however, could weigh on exports. FocusEconomics Consensus Forecast panelists expect GDP to grow 2.8% in 2019, which is unchanged from last month’s forecast, and 2.8% again in 2020.
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|Exchange Rate||594.7||-0.57 %||May 13|
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Costa Rica Economic News
May 10, 2019
Annual economic growth in cyclically-adjusted terms was unchanged in March from February’s revised 1.9% reading (previously reported: +1.7% year-on-year), according to the monthly index of economic activity published by the Central Bank of Costa Rica.
May 8, 2019
Consumer prices rose 0.56% in April compared to the previous month, contrasting the 0.14% fall in March.
Costa Rica: Dry weather holds back economy in February as agriculture output drops for fifth month running
April 10, 2019
Annual economic growth in cyclically-adjusted terms was unchanged in February from January’s revised 1.7% reading (previously reported: +1.6% year-on-year), according to the monthly index of economic activity published by the Central Bank of Costa Rica.
April 5, 2019
Consumer prices fell 0.14% in March compared to the previous month, contrasting the 0.08% increase in February.
Costa Rica: Economic growth slows to a near six-year low at the end of 2018, hit by large public protests
March 29, 2019
In the fourth quarter of 2018, the economy grew 1.4% compared to the same quarter a year earlier.