Costa Rica: Economic activity growth picks up in November
January 11, 2018
Annual growth in economic activity increased from a revised 2.2% in October (previously reported: +2.3% year-on-year) to 2.4% in November last year, according to the monthly index of economic activity (IMAE, Indice Mensual de Actividad Económica) published by the Central Bank of Costa Rica (BCCR).
Although November’s annual growth rate was the highest in three months, it was low by historical standards. The result was underpinned by increased activity in the manufacturing and professional services sectors. However, a weaker construction sector weighed heavily economic activity in November: Increased public-sector activity in the construction sector could not compensate for significantly less private-sector activity, leading to an overall decline.
In month-on-month terms, the growth rate in economic activity increased from a revised 0.35% in October (previously reported: +0.21% month-on-month) to 0.39% in November. Annual average growth slowed—as it generally has done since early 2016—dipping from October’s 3.3% to 3.1% in November.
Costa Rica GDP Forecast
The BCCR expects the economy to expand 4.1% in 2018. FocusEconomics Consensus Forecast panelists expect GDP growth to reach 3.7% 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