Costa Rica: Economic activity growth accelerates in December
February 9, 2018
In December, year-on-year growth in economic activity accelerated to the fastest pace in 10 months, increasing from a revised 3.2% in November (previously reported: +2.4% year-on-year) to 3.5%, according to the monthly index of economic activity (IMAE, Indice Mensual de Actividad Económica) published by the Central Bank of Costa Rica (BCCR).
December’s result was underpinned by increased activity in the services and manufacturing sectors. However, despite strong growth in public-sector construction activity, including that related to the building of a large port terminal in Moín, Limón province, weaker private-sector activity led to an overall decline in construction activity.
In month-on-month terms, the growth rate in economic activity decelerated from a revised 0.58% in November (previously reported: +0.39% month-on-month) to 0.52% in December. Meanwhile, year-on-year average growth remained unchanged from November’s 3.1% in December.
Costa Rica GDP Forecast
The BCCR expects the economy to expand 3.6% in 2018 and 3.9% in 2019. FocusEconomics Consensus Forecast panelists also expect GDP growth to reach 3.6% in 2018, which is down 0.1 percentage points from last month’s forecast. In 2019, our panelists expect GDP growth to come in at 3.8%.
Author: Edward Gardner, Economist