Costa Rica: Economic activity remains strong in July
September 11, 2012
In July, economic activity increased 4.5% over the same month last year, according to the monthly index of economic activity (IMAE, Indice Mensual de Actividad Economica). The figure came in below the revised 5.2% expansion recorded in June (previously reported: +5.3% year-on-year). As in previous months, the deceleration was mostly driven by softer growth in the manufacturing sector. Compared to the previous month, economic activity fell 0.13% in seasonally adjusted terms, which followed the 0.22% contraction recorded in June. As a result of the weaker annual reading, the upward trend initiated in mid-2011 ended, with annual average economic growth remaining stable at July's revised 6.0%. According to the latest revision to the Macroeconomic Programme 2012-2013, the Central Bank sees the economy expanding 4.8% this year. For 2013, the Bank expects economic growth to slow to 4.2%.