Costa Rica: Growth decelerates in Q3
December 30, 2016
In the third quarter of 2016, GDP expanded 4.4% over the same period of the previous year. The reading marked a slowdown from Q2’s growth of 5.3%. All the components of domestic demand decelerated and the external sector also weighed on the economic performance.
In Q3, total consumption moderated from Q2’s 4.2% increase to a slower, but still robust, 3.2% expansion. Private consumption rose 3.5%, down from Q2’s 4.9% increase, and government spending picked up slightly from the 1.7% expansion of the previous quarter to a 2.1% increase in Q3. Fixed investment improved from Q2’s 5.7% drop to a 0.1% decrease in Q3.
On the external side of the economy, exports of goods and services moderated from the astounding 12.5% growth of Q2 to expand 4.1% over the same quarter of the previous year. Imports growth also slowed down to 4.4% in Q3, which was below Q2’s 11.4% increase. The result was a negative contribution to overall growth from the external sector of minus 0.3 percentage points, deteriorating from the minus 0.1 percentage point detraction seen in Q2.
Author: Andrea Vetrugno, Economist