Costa Rica: Economic growth inches down in Q2
October 3, 2016
In the second quarter of 2016, GDP expanded 4.1% over the same period last year. The reading marked a slowdown over Q1’s revised growth of 4.5% (previously reported: +4.8% year-on-year). All the components of domestic demand decelerated and the external sector also weighed on the economic performance.
In Q2, total consumption moderated from Q1’s 4.3% increase to a slower, but still robust, 4.0% expansion. Private consumption rose 4.4%, down from Q1’s 4.8% increase and government spending eased slightly from the 2.1% expansion of the previous quarter to a 2.0% increase in Q2. Fixed investment growth decelerated the fastest, falling from 8.5% growth in Q1 to 0.5% in Q2.
On the external side of the economy, exports of goods and services increased 9.0% again, matching Q1’s reading. Imports, on the other hand, were the only component that picked up, expanding 10.1% in Q2, which was up from Q1’s 9.6% increase. The result was a negative contribution to overall growth from the external sector of minus 0.7 percentage points, deteriorating from the minus 0.6 percentage point detraction seen in Q1.
Author: Andrea Vetrugno, Economist