GDP in Costa Rica
Costa Rica - GDP
GDP growth slows on weak consumer spending in Q1
The economy appears to have lost steam in Q1, seemingly slowed down by a sharp deceleration in the pace of consumer spending. According to data released by the Central Bank on 30 June, GDP growth slowed to 3.0% in Q1 and came up very short of the 4.3% growth recorded in Q4 2016. Notwithstanding the recovery in fixed investment in the quarter, the report disappointed, falling well below the 4.3% expansion expected by our FocusEconomics Consensus Forecast panelists.
Consumption dynamics in the quarter were particularly weak, with growth in total consumption almost halved on the back of a notable slump in private consumption (Q1: +1.7% yoy; Q4: +3.8% year-on-year). For its part, growth in government consumption remained broadly stable at 5.6% (Q4: +5.7% yoy). In the report’s single bright spot, fixed investment rebounded to 5.2% growth in the quarter following nearly a year of contraction (Q4: -0.4% yoy).
A sharp deceleration in the growth of exports knocked the external sector off-course following a year of strong growth. Exports grew at a meagre 2.7% in Q1 (Q4: +7.1% yoy), a six-quarter low. Imports, on the other hand, expanded at a faster clip in Q1, coming in at 4.0% (Q4: +3.4% yoy)—likely the result of higher imported fuel costs at the outset of the year. Consequently, the external sector’s contribution to growth was minus 0.1 percentage points (Q4: plus 0.1 percentage points), marking the sector’s first drag on headline growth in more than a year.
Growth is expected to pick up in the coming quarters. In particular, the Central Bank expects the economy to shake off a weak Q1 and record full-year GDP growth of 4.1% both this year and next. Striking a similar tone, FocusEconomics Consensus Forecast panelists expect GDP growth of 4.0% in 2017, which is unchanged from last month’s projection. In 2018, our panelists see GDP growth edging down slightly to 3.9%.
Costa Rica - GDP Data
|Economic Growth (GDP, annual variation in %)||4.7||2.1||3.0||4.7||4.3|
5 years of economic forecasts for more than 30 economic indicators.
Costa Rica GDP Chart
Source: Costa Rica Central Bank and FocusEconomics calculations.
Costa Rica Facts
|Exchange Rate||577.9||-0.09 %||Sep 21|
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September 11, 2017
Growth in economic activity in Costa Rica decreased slightly from a revised 4.6% in June (previously reported: 4.2% year-on-year) to 4.4% in July in annual terms, according to the monthly index of economic activity (IMAE, Indice Mensual de Actividad Económica) published by the Central Bank of Costa Rica (BCCR).
September 8, 2017
Consumer prices decreased 0.22% in August on a monthly basis, the first monthly decrease in prices since March and contrasting the previous month’s 0.32% rise.
August 11, 2017
Economic activity inched up from a revised 4.1% in May (previously reported: 3.9% year-on-year) to 4.2% in June in annual terms, according to the monthly index of economic activity (IMAE, Indice Mensual de Actividad Económica) published by the Central Bank of Costa Rica (BCCR).
August 8, 2017
In July, consumer prices rose 0.32%, coming in above June’s 0.08% increase.
July 12, 2017
Economic activity increased 3.9% in annual terms in May, according to the monthly index of economic activity (IMAE, Indice Mensual de Actividad Económica) as published by the Central Bank of Costa Rica (BCCR).