GDP in Costa Rica

Costa Rica GDP

GDP growth gathers steam in Q2

The Costa Rican economy picked up pace in the second quarter of 2023, when GDP growth accelerated to 5.1% year on year, up from the prior quarter’s 4.4% increase. Q2’s upturn was the strongest since Q1 2022.

Domestically, the improvement was broad-based; private consumption grew at a stronger annual 3.8% in Q2, accelerating from Q1’s 3.1%. Inflation averaged 0.7% in Q2, the lowest level since Q1 2021, alleviating the pressure on households’ disposable income and purchasing power. Moreover, government spending returned to growth, posting a 0.5% expansion in Q2, contrasting Q1’s 0.5% decline. Lastly, fixed investment growth sped up to 9.6% in Q2 (Q1: +2.5% yoy), likely thanks to lower interest rates.

Turning to the external sector, exports of goods and services growth eased to 14.2% year on year in Q2, down from the prior quarter’s 15.6% increase. Conversely, imports of goods and services growth accelerated to an annual 13.4% in Q2 (Q1: +2.6% yoy). Consequently, the external sector likely contributed to overall GDP growth.