Costa Rica: Economic growth decelerates notably in Q3
December 28, 2012
In the third quarter, GDP expanded 3.8% over the same period the previous year. The reading came in below the revised 5.8% increase seen in the preceding quarter (previously reported: +5.7% year-on-year).
The deceleration was driven by a deterioration of the external sector. Exports of goods and services slowed from a strong 10.6% expansion in the second quarter to a softer 5.1% increase in the third quarter, while imports moderated at a milder pace and rose 4.8%, below the 8.9% rise tallied in the second quarter. As a result, the net contribution from the external sector to overall growth fell from plus 1.4 percentage points in the second quarter to plus 0.4 percentage points in the third.
On the domestic side of the economy, total consumption expanded 3.9%, unchanged from the previous quarter, as both private and government consumption remained virtually unchanged. Meanwhile, gross fixed investment decelerated from a 9.5% expansion in the second quarter to a 4.3% increase in the third.
A quarter-on-quarter comparison corroborates the slowdown suggested by the annual figures as GDP expanded a seasonally adjusted 0.4% over the previous quarter, slightly below the 0.5% increase seen in the second quarter.
According to the latest revision to the Macroeconomic Programme 2012-2013, the Central Bank sees the economy expanding 4.2% this year.