Costa Rica: Economic activity remains strong in January
March 13, 2012
In January, economic activity expanded 6.4% over the same month last year, according to the monthly index of economic activity (IMAE, indice Mensual de Actividad Economica). The reading was only an inch below the 6.5% expansion observed in December, which had 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 0.39% in seasonally adjusted terms, which followed the 0.64% expansion recorded in December. Nevertheless, the trend continues to improve, with annual average economic growth rising from the 4.1% expansion recorded in December to 4.5%. According to the Macroeconomic Programme 2012-2013, 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 that that the economy will grow 4.0% this year and 4.5% in 2013.