Costa Rica: Economic activity quickens in November
January 12, 2012
In November, economic activity expanded 6.1% over the same month the year before, according to the monthly index of economic activity (IMAE, indice Mensual de Actividad Economica). The reading was above the revised 5.9% expansion observed in October (previously reported: +4.9% year-on-year) and marked the strongest reading since April 2010. The expansion reflected resilient growth in the transport and manufacturing sectors. On a monthly basis, economic activity rose 0.48% in seasonally adjusted terms, which was below the 0.77% expansion recorded in October. The trend continues to improve, as annual average economic growth rose 3.8%, faster than the 3.5% expansion in October. The Central Bank recently released its Macroeconomic Programme 2012-2013, in which it presented two alternatives scenarios depending on the approval of a fiscal reform. The Central Bank sees the economy expanding 3.8% this year before decelerating slightly to 3.5% in 2013, if the fiscal reform is not approved. In the alternative scenario, where the fiscal reform gets approval before the second quarter, the Bank estimates growth will come at 4.0% this year and at 4.5% in 2013.