• Costa Rica Real Estate

Costa Rica’s economy growing but slowing down

July 18, 2008

Despite strong growth during the first four months of the year, the Costa Rican economy is slowing down, according to the Central Bank.

The economy grew 5.9 percent during the first four months, down from 7 percent during the same period in 2007.

The Central Bank´s monthly report on the economy indicates that “despite a trend toward deceleration and adverse conditions in the international context … domestic economic activity continues to display a robust growth profile.”

The document cites the construction industry, which grew 19.9 percent, as a major source of growth. The service sector grew 6.9 percent as a result of strong growth in telecommunications and finance. Manufacturing grew by 4.4 percent.

Agriculture contracted by 2.9 percent. Growth in pineapple, milk and other non-traditional crops failed to compensate for decreased sales of melons, bananas and sugarcane.

The country´s trade deficit widened substantially compared to recent years. The trade imbalance reached $2.27 billion during the first four months, substantially higher than the deficits of $1.10 billion and $985 million reported during the same period in 2007 and 2006, respectively.

In terms of the fiscal situation, the Finance Ministry reported last week that the government registered a $230 million (2 percent of gross domestic product) financial surplus during the first half of the year.

The National Tourism Chamber (CANATUR) reported last week that the number of tourists visiting the country grew 12 percent during the first half of the year compared to the same period last year with more than 1 million foreign tourists visiting the country.

Consumer price inflation was 6.5 percent during the first six months, nearly 2 percentage points higher than during the same period last year (4.7), according to the National Statistics and Census Institute (INEC).

In 2007, the Costa Rican economy grew 7.1 percent, down from 8.6 percent in 2006.

Facebook Comments

You may be interested

Despite reports, Costa Rica continues to not be an island
Tico Times Shade
3187 views
Tico Times Shade
3187 views

Despite reports, Costa Rica continues to not be an island

Alejandro Zúñiga - July 23, 2019

Despite recent reports to the contrary, The Tico Times has confirmed that Costa Rica is not an island. This news…

Costa Rican dog attends trial as a victim of animal abuse
Costa Rica
664 views
Costa Rica
664 views

Costa Rican dog attends trial as a victim of animal abuse

AFP and The Tico Times - July 23, 2019

Champion, a two-year-old dog, became on Monday the first animal in Latin America to attend the trial of his former…

Flamingo Fishing Rodeo set to begin in one of sportfishing’s best destinations
Fishing
152 views
Fishing
152 views

Flamingo Fishing Rodeo set to begin in one of sportfishing’s best destinations

The Tico Times - July 23, 2019

Flamingo, Guanacaste, is one of sportfishing’s legendary destinations, an idyllic laid-back beach community located on Costa Rica's northern Pacific coast.…

Do NOT follow this link or you will be banned from the site!