Costa Rica: Economic activity decelerates on weak manufacturing growth
November 9, 2012
In September, economic activity increased 3.4% over the same month last year, according to the monthly index of economic activity (IMAE, Indice Mensual de Actividad Economica). The figure, the lowest since May 2011, came in below the revised 3.7% expansion recorded in August (previously reported: +3.2% year-on-year). As in previous months, the deceleration was mostly driven by softer growth in the manufacturing sector. Compared to the previous month, economic activity added 0.25% in seasonally adjusted terms, which contrasted the virtually flat reading recorded in August. As a result of the weaker annual reading, annual average economic growth inched down from 5.9% in August to 5.8%. Based on the monthly figures, in the third quarter the economy is likely to have expanded 3.8% over the same period last year, which would mark a deceleration compared to the 5.7% expansion seen in the second quarter. According to the latest revision to the Macroeconomic Programme 2012-2013, the Central Bank sees the economy expanding 4.8% this year. For 2013, the Bank expects economic growth to slow to 4.2%.