Costa Rica: Economic activity continues to improve in May
July 12, 2011
In May, economic activity increased 4.1% over the same month the year before, according to the monthly index of economic activity (IMAE, indice Mensual de Actividad Economica). The reading was above the 3.9% expansion observed in April and marked the fastest pace since July 2010. The acceleration reflected an improvement in the manufacturing sector (April: +2.1% year-on-year; May: +2.6% yoy) and in the construction industry (April: +0.0% yoy; May: +0.8% yoy), which marked the first positive reading since the beginning of 2009. On a monthly basis, economic activity rose 0.23% in seasonally adjusted terms, which was below the 0.50% expansion recorded in April. However, the trend continues to point downwards, with annual average economic growth moderating from 3.6% in April to 3.5% in May. In the 19 July revision to the Macroeconomic Programme 2011-12, the Central Bank raised its economic growth estimates and now sees the economy expanding 4.5% this year, slightly faster than the previous 4.3%. For 2012, the Bank raised its forecast from 4.5% to 4.7%.