Costa Rica: Economic activity decelerates further in January
March 14, 2014
In January, economic activity increased 3.1% over the same month last year according to the monthly index of economic activity (IMAE, Indice Mensual de Actividad Economica). The figure was below the 3.3% expansion recorded in December. In January, seven of the twelve components of the index registered improvements, with other business services and construction recording the largest rates of expansion. Manufacturing, however, decelerated for the fourth consecutive month thus holding back an overall improvement in the index. Compared to the previous month, economic activity rose 0.01% in seasonally-adjusted terms, marking a slightly higher reading than the 0.05% contraction recorded in December. Meanwhile, annual average growth in economic activity remained at December's 3.5%. According to the latest revision of the Macroeconomic Programme 2014-2015, the Central Bank expects the economy to have expanded 3.5% in 2013 and projects a 3.8% expansion in 2014. FocusEconomics Consensus Forecast panelists see growth at 3.9% this year, which is up 0.1 percentage points from last month's projection. For 2015, participants see economic growth at 4.1%.
Author: Armando Ciccarelli, Head of Data Solutions