Costa Rica: Economic activity growth accelerates in July
September 11, 2018
In July, annual growth in economic activity accelerated to 3.7% from a substantially-revised 3.6% in June (previously reported: +4.2% year-on-year). This is according to the monthly index of economic activity (IMAE, Indice Mensual de Actividad Económica) published by the Central Bank of Costa Rica (BCCR) that is adjusted for working days. July’s reading represented the highest growth rate since January 2017.
The acceleration in July came on the back of a broad-based increase in economic activity, with a fast-recovering construction sector and a strong information and communications sector propelling year-on-year growth. The construction sector, which began to recover in March this year after recording ten months of sustained contraction, received a growth impulse in July thanks to increased non-residential construction activity.
In month-on-month terms when adjusted for working days, economic activity growth remained steady at June’s 0.2% in July. Meanwhile, year-on-year annual average growth ticked up to 3.1% from May’s 3.0%.
Costa Rica GDP Forecast
The BCCR expects the economy to expand 3.2% in 2018 and 3.4% in 2019. FocusEconomics Consensus Forecast panelists expect GDP growth to reach 3.2% in 2018, which is unchanged from last month’s forecast. In 2019, our panelists expect GDP growth to come in at 3.3%.
Author: Edward Gardner, Economist