Costa Rica: The economy remains sluggish in June
August 9, 2019
Annual economic growth in cyclically-adjusted terms inched up to 1.5% in June from May’s revised 1.4% (previously reported: +1.3% year-on-year), which represented the weakest reading since December 2009.
Growth remained historically subdued in June due to a continued decline in activity in the agriculture sector, which is struggling following a prolonged spell of dry weather, partly due to the El Niño effect. In addition, construction activity slumped noticeably in June due to uncertainty caused by the fiscal reform bill, according to a survey conducted by the Central Bank. On a brighter note, however, the ICT sector posted strong activity growth.
In month-on-month terms adjusted for working days, economic activity increased 0.2% in June, up from 0.1% in May. Annual average growth, meanwhile, slowed to 2.0% in June from 2.2% in May.
Author: Edward Gardner, Economist