Central Bank Lowers Costa Rica's Growth Projection for 2024 - Expat Community

Central Bank Lowers Costa Rica’s Growth Projection for 2024

Apr 30, 2024 | Costa Rica, News & Articles | 0 comments

by Óscar Rodríguez y Luis Enrique Brenes

The Costa Rican economy is projected to grow by 3.8% of gross domestic product (GDP) this year, a figure lower than the 4% projected in January. The Central Bank of Costa Rica (BCCR) reported on the economic deceleration during the presentation of the Monetary Policy Report (MPR) on Tuesday, April 30, by Róger Madrigal, president of the institution.

The new forecast by the bank is due to certain sectors, which, although experiencing growth, will see it at a lower rate than anticipated earlier this year. For 2025, it is forecasted that the national production increase will also be 3.8% (down from 3.9% in January), as reported by the official in a virtual press conference.

“The economy is slowing down compared to 2023 (when it grew by 5.1%) and we are revising downwards from what we had said in January, which was 4% for 2024, and now it’s 3.8%,” said Madrigal.

The downward revision for 2024 is explained by a more moderate increase in household consumption, growing at 2.6% compared to 5% last year. However, it is expected to grow at 3.7% in 2025.

Exports will be another component of GDP whose growth trajectory is significantly reduced, with a shift from 10% growth last year to 5.4% for this year.

“When we look at the increase in production by economic activity, we see that all sectors are growing but at a slower pace. Business services, hotels, and restaurants still show strong growth,” noted the official.

Among the sectors experiencing reductions, construction stands out with a projected growth of 3.3% for this year, down from 13.3% the previous year. Similarly, manufacturing is expected to advance by 3.5% in 2024, compared to 8.4% in 2023.

Róger Madrigal, president of the Central Bank, announced that the economy will decelerate this year with a projected growth rate of 3.8%, down from 4% forecasted in January.


Related Post

What is going on in your part of the world? Are there any news of relevance you believe should be translated to english? Comment below!


Submit a Comment

Your email address will not be published. Required fields are marked *

Subscribe for Weekly News Summaries