Costa Rica Economic Activity January 2021

Costa Rica

Costa Rica: Decline in economic activity continues to ease in January

March 15, 2021

Economic activity slid 4.8% year-on-year in January (December: -5.0% yoy). The print marked the smallest contraction since the outbreak of the pandemic in March 2020.

January’s result reflected a broad-based improvement, with activity in the agriculture, forestry and fishing, as well as construction and services sub-sectors all contracting at softer paces. Moreover, activity in the manufacturing sub-sector gained further momentum.

In month-on-month terms adjusted for working days, economic activity grew 0.4% in January, slowing from December’s 0.5% rise. Meanwhile, annual average growth continued to decrease, coming in at minus 5.5% in January, down from December’s minus 4.9% print.

Commenting on the outlook following the agreement with the IMF, Gabriel Lozano, economist at JPM, noted:

“While the program […] appears to strike the right balance between revenues- and spending-adjustments, uncertainty related to the pandemic and the potential for further emergency spending suggests the economy will struggle for long before stabilizing debt-dynamics for good.”

FocusEconomics Consensus Forecast panelists project the economy to expand 3.1% in 2021, which is unchanged from last month’s forecast. In 2022, panelists forecast the economy to grow 3.6%.


Author:, Junior Economist

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Costa Rica Economic Activity Chart


Costa Rica Economic Activity January 2021 0

Note: Year-on-year changes and annual average variation of trend-cycle economic activity in %.
Source: Costa Rica Central Bank (BCCR).


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