Consumption in Costa Rica
Costa Rica - Consumption
GDP contraction eases further in Q1
GDP slid at a milder pace of 1.6% year-on-year in the first quarter of 2021 (Q4 2020 -2.7% yoy), according to rebased national accounts data, with the new base year referring to 2017 prices. Q1's reading marked the softest contraction since the outbreak of the pandemic.
Domestically, public consumption growth accelerated in Q1, clocking in at 9.6% (Q4 2020: +3.0% yoy). Meanwhile, private spending fell at a slower pace of 1.9% year-on-year in the first quarter (Q4 2020: -3.3% yoy), likely supported by a decreasing unemployment rate (Q1: 18.7%; Q4: 20.0%) likely contributed to supporting household spending in the period. However, fixed investment contracted at a quicker rate of 7.8% in Q1 (Q4 2020: -4.6% yoy).
Turning to the external sector, exports of goods and services declined at a softer pace of 8.3% in annual terms in Q1 compared to the prior quarter’s 6.1% fall. Similarly, imports of goods and services slid 1.3% in Q1, moderating from Q4 2020’s 5.8% drop and pointing to a continued recovery in domestic demand.
Moving to the second quarter of the year, high-frequency data shows that the gradual improvement in economic conditions continued, with growth in economic activity accelerating markedly in April—although this was flattered by a favorable base effect. Our panelists expect the economy to have bounced back to growth in Q2. The vaccination drive picked up pace throughout the quarter, boding well for activity in the period and heading into Q3.
FocusEconomics panelists see the economy expanding 3.3% in 2021, which is up 0.2 percentage points from last month’s projection, and growing 3.4% in 2022.
Costa Rica - Consumption Data
| 2015 | 2016 | 2017 | 2018 | 2019 | |
|---|---|---|---|---|---|
| Consumption (annual variation in %) | 4.2 | 3.6 | 3.5 | 1.7 | 2.2 |
Costa Rica Consumption Chart
Source: Costa Rica Central Bank and FocusEconomics calculations.
Costa Rica Facts
| Value | Change | Date | |
|---|---|---|---|
| Exchange Rate | 571.0 | -0.57 % | Jan 01 |
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Economic News
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Costa Rica: Economic activity grows at quickest pace in over 14 years in June
September 10, 2021
The economy gained further momentum in June, with economic activity rising 8.1% in annual terms, following May's 8.0% increase and marking the strongest growth since April 2007.
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Costa Rica: Inflation picks up in August
September 9, 2021
Consumer prices increased 0.28% in August over the previous month, contrasting the 0.21% fall seen in July.
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Costa Rica: Inflation drops in July
August 13, 2021
Consumer prices dropped 0.21% in July over the previous month, contrasting the 0.54% increase recorded in June.
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Costa Rica: Central Bank keeps rate unchanged in July
July 21, 2021
At its 21 July meeting, the Central Bank of Costa Rica once again decided to hold fire, keeping the monetary policy rate unchanged at its record low of 0.75%—where it has been since 17 June 2020.
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Costa Rica: Economic activity growth gains further traction in May
July 12, 2021
The economy continued to gain traction in May, with economic activity growth accelerating to 7.9% in annual terms (April: +7.3% yoy), and marking the best result in over a decade.
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