Costa Rica: Economic activity slows but remains firm
August 13, 2012
In June, economic activity increased 5.3% over the same month last year, according to the monthly index of economic activity (IMAE, Indice Mensual de Actividad Economica). The figure came in below the revised 5.8% expansion recorded in May (previously reported: +5.1%% year-on-year). As in previous months, the deceleration was buttressed mostly by softer growth in the manufacturing sector, which slowed for the fourth month in a row but expanded a still healthy 7.5%. Compared to the previous month, economic activity added a paltry 0.02% in seasonally adjusted terms, which contrasted 0.08% contraction in May. Despite the weaker reading, the trend picked-up, with annual average economic growth inching up from 5.8% in May to 5.9% in June, its highest level since June 2008. According to the July revision to the Macroeconomic Programme 2012-2013, the Central Bank sees the economy expanding 4.8% this year, up from the previous 3.8%. For 2013, the Bank now expects economic growth to slow to 4.2%.