Economic Growth Up Slightly in August

Costa Rica’s economy grew slightly more in August than it did in July, according to Banco Central’s most recent Monthly Index of Economic Activity.

According to the bank, Costa Rica’s economy grew 3 percent year-over-year in August. Costa Rica’s growth rate has been steadily slowing for months. July’s year over-year rate was 2.8 percent, the lowest it has been since 2002.

In a statement Monday, the financial advising firm Aldesa said it expected economic growth to continue to slow, in part because exports to the United States, Costa Rica’s principal trade partner, are also expected to slow because of the financial troubles there.

Rising interest rates and a tightening of credit here in Costa Rica are also holding back investment and spending, which contributes to slowing the economy’s growth, Aldesa said.

These figures follow other somber economic indicators in recent weeks.

Inflation for the 12 months ending in September reached 15.77 percent, the highest year-over-year increase Costa Rica has seen in 10 years.

Also, consumer confidence fell in September.