Monday, 1 June 2020

“It’s one of slowdown, not a recession,” says Central Bank President

We will not have a recession, but a complicated growth, the economy as a whole continues to grow,” assures Rodrigo Cubero, president of Banco Central de Costa Rica

We are not in a recession and a contraction of the economy is not expected either, was the message on Monday by Rodrigo Cubero, president of the Banco Central de Costa Rica (BCCR) – Central Bank, when presenting the updated macroeconomic forecasts for 2019 and 2020.

“It’s one of slowdown, not a recession,” said Rodrigo Cubero, president of the Central Bank. Image: La Republica

According to the Central Bank, we will have a slowdown Gross Domestic Product (GDP) from 2.6% last year to 2.2% in 2019, the slowest growth in a decade.

The Central Bank added that little optimism is perceived by households and businesses, which impacts trade, as well as external shocks; for example, the lower price of pineapple and climatic problems.

- paying the bills -

Another concern is the fact that there are few sources of growth before a government that must cut costs and that demonstrates a chronic under-execution in infrastructure projects.

Precisely, the public sub-execution in road, aqueduct and sewer projects was a “no less” problem during the first part of the year, which must be corrected to revive the economy.

In addition, the risks to economic growth have a downward bias; among them, the threat of strikes this year and the socio-political situation of Nicaragua, the Central Bank added.

On the other hand, there are factors that could inspire confidence, such as the better credit conditions promoted by the Central Bank and the National Financial System Oversight Council.

The Central Bank predicts that the pace of growth would accelerate for the first time in four years to 2.6% in 2020, hand in hand with a rebound in the world economy that would give Costa Rica a break.

- paying the bills -

“We are not in a recession, this is important to say, there are some activities that are in a contraction phase; some, technically, could be said to be in recession because they have been in negative growth for six consecutive months, but the economy as a whole continues to grow,” Cubero said.

Rico
Ricohttp://www.theqmedia.com
"Rico" is the crazy mind behind the Q media websites, a series of online magazines where everything is Q! In these times of new normal, stay at home. Stay safe. Stay healthy.

Related Articles

Dollar Exchange Drops Below ¢570

The "yo-yo" dollar exchange today, Wednesday, April 15, is at a...

What can we expect for the dollar exchange with the ‘coronavirus effect’?

The dollar exchange rate is currently under strong pressure, towards a...

MOST READ

Nicaragua doctor speaks out: “Clearly, we are a threat to neighboring countries”

(QCOSTARICA) "Clearly, we are a threat to neighboring countries due to the irresponsible and negligent handling of the phases of the pandemic. Nothing has...

Costa Rica tells Panama that it will not receive the inter-continental migrants stranded by Covid-19

The director immigration, Raquel Vargas, clarified to Panama that she will not receive on Costa Rican soil some 1,900 inter-continental migrants who were stranded...

Costa Rica is second in the region with the most blood donors

Costa Rica is the second country in Central America where there are more blood donors; only surpassed by El Salvador, but the Blood Bank...

COVID-19 goes from respiratory disease to multisystemic

When you talk to doctors in intensive care units (ICUs) in the UK and other countries around the world who have been dealing with...

Coronavirus in Costa Rica: Confirmed cases now 1,022, All hotels will operate at 50%

With 1,022 covid-19 confirmed cases as of this Friday, May 29, Costa Rica is preparing to enter a new phase of reopening activities starting...

Half of Americans Plan to Take Post-Pandemic Trips Over the Next Six Weeks

(TRAVEL PULSE) Just released, Longwoods International’s eleventh-wave ‘COVID-19 Travel Sentiment Study’ indicates that nearly half (48%t) of U.S. travelers are planning their first post-pandemic...

Let's Keep This Going!

To be updated with all the latest news and information about Costa Rica and Latin America.