Trade Deficit Doubles; Sluggish Exports Blamed
Costa Rican exports slowed through July, lifting the trade deficit to $3.3 billion – nearly twice the trade deficit during the same period last year.
The Central Bank reported Tuesday on its Web site, www.bccr.fi.cr, that while exports in the first seven months of 2008 surpassed $5.7 billion, imports grossed just over $9 billion.
By July 2007, Costa Rica ran close to a $1.7 billion deficit, 96.5 percent below this year’s seven-month figure.
“(Higher trade deficit) was expected, but not in the magnitude we’re seeing,” said Betty Sánchez, of the bank’s economic analysis and consultancy department.
“What we’ve been seeing is a lower rise in exports largely due to lower foreign demand, and particularly the slowed growth in the United States, and, on other the hand, a higher value on imports,” During this year’s first seven months, exports rose only 6.3 percent above the 2007 total of just under $5.4 billion.
Imports through July, meanwhile, were up 27.7 percent over the $7 billion imported during the same period last year.
Costa Rica’s biggest sellers are computer chips, bananas, pineapples, medicine and medical equipment, textiles and coffee.
Sánchez explained import costs are being driven by the dramatic increases in fuel and basic grain prices in the past year.
You may be interested
Costa Rica to face Qatar in November soccer friendlyAlejandro Zúñiga - October 27, 2020
The Costa Rica men's national team will face Qatar in an international soccer friendly next month. La Sele will play…
Chileans look to future after referendum to replace constitutionDenis BARNETT / AFP - October 27, 2020
Chileans gleefully ripped up their Pinochet-era constitution in a weekend referendum, but the focus turned Monday to the next chapter,…
News briefs: Costa Rica news highlights to start your TuesdayAlejandro Zúñiga - October 27, 2020
Happy Tuesday from The Tico Times! We hope you're reading this while drinking a delicious Costa Rican coffee or eating a…