Current Account in Costa Rica
Costa Rica - Current AccountEconomic growth likely accelerated in Q3, after posting the worst performance in almost a decade in Q2. Activity growth accelerated in August and July in cyclically-adjusted terms, likely in part due to the Central Bank’s recent interest rate cuts, which should have supported private consumption and fixed investment. Moreover, merchandise export growth gained steam in the quarter as a whole. However, this economic acceleration should have been modest given the new VAT, which was introduced in July, stoked inflation and eroded consumers’ spending power. Furthermore, business and consumer confidence sank in Q3. In politics, Finance Minister Aguilar, who played a key role in recent fiscal reforms, resigned on 23 October, which could further unnerve business confidence. In other news, the government-affiliated National Wages Council recently supported increasing the minimum wage by 2.5% from 1 January.
Costa Rica - Current Account Data
|Current Account (% of GDP)||-4.9||-4.8||-3.5||-2.2||-3.0|
5 years of economic forecasts for more than 30 economic indicators.
Costa Rica Current Account Chart
Source: Costa Rica Central Bank and FocusEconomics calculations.
Costa Rica Facts
|Exchange Rate||576.5||-0.57 %||Sep 04|
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November 12, 2019
Annual economic growth in cyclically-adjusted terms accelerated to 2.0% in September from August’s revised 1.7% reading (previously reported: +1.6% year-on-year).
November 7, 2019
Consumer prices fell 0.1% in October in month-on-month terms for the third consecutive month, partly due to the continued high-base effect stemming from the introduction of VAT in July, which replaced the old sales tax.
October 30, 2019
At its 30 October monetary policy meeting, the Central Bank of Costa Rica took market analysts by surprise and cut the key policy interest rate to 3.25% from 3.75%.
October 10, 2019
Annual economic growth in cyclically-adjusted terms accelerated to 1.6% in August from July’s revised 1.4% reading (previously reported: +1.5% year-on-year).
October 7, 2019
Consumer prices fell 0.1% in September compared to the previous month, matching August’s decrease, which was partly due to the continued high-base effect stemming from the introduction of VAT in July, which replaced the old sales tax.