Thursday 24 June 2021

Rise In Domestic Consumption Sustains Costa Rica Economy

Construction of City Mall project in Alajuela, to be the largest mall in Costa Rica and Central America when it opens in October.
Construction of City Mall project in Alajuela to be the largest mall in Costa Rica and Central America when it opens in October.

(QCOSTARICA) A decline in foreign trade has been offset by the 4.33% increase in domestic consumption resulting in a GDP growth of 2.68% in the first quarter.

Consumption by the Government and families have seen the same upward trend since 2013, a situation that compensates for the decline in private investment in the last quarter, which is maintaining a downward trend, extending a decline that has already been going on for six quarters.

- Advertisement -

In an article in, Olivier Castro, president of the Central Bank (Banco Central de Costa Rica – BCCR), said that “… a downward adjustment is forecast for growth of the Costa Rican economy this year”, which is supported by economists and businessmen who “… doubt that GDP will be maintained further if the external sector stays ” resentful” and with negative changes.”

“… Luis Mesalles, director of the Costa Rican Union of Chambers and Associations of Private Enterprises (Unión Costarricense de Cámaras y Asociaciones del Sector Empresarial Privado  – Uccaep), it is difficult to believe that domestic consumption will maintain its growth and manage to ‘carry’ the rest of the economy with it. ”

Lower production means it will be very difficult to lower the unemployment and underemployment. Also, the real income of people can not grow much, ” said Mesalles.

José Luis Arce, an economist at the Economic and Financial Advisers (Consejeros Económicos y Financieros – CEFSA), said the pessimism of entrepreneurs and families has lowered investment and will reduce the rise in GDP in the future.

- Advertisement -

Production growth in the first quarter was led by construction, financial services and insurance, plus transport, storage and communications.

“We will have an industry that will continue to slow the rest of the year and with a slight improvement at the end of 2015,” said Francisco Gamboa, executive director of the Chamber of Industries ( Cámara de Industrias).

Agriculture was the only Costa Rican productive sector that had a negative production,  falling 1.4%.

Alberto Franco,  economist at Ecoanálisis, said that the climatic effects of  El Niño will result in lower production for the rest of the year. Banana and pineapple are among the most affected by the rains, while livestock has been hit by droughts in Guanacaste.


- Advertisement -

We strive for accuracy in its reports. But if you see something that doesn’t look right, send us an email. The Q reviews and updates its content regularly to ensure it’s accuracy.

"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

Weather, friendly locals, cost of living: expats in Mexico, Costa Rica enjoy same things

EXPAT FOCUS (MND) Of course it was no surprise that readers...

Cynthia Ann Telles named new U.S. Ambassador to Costa Rica

QCOSTARICA - Today, U.S. President Joe Biden announced his nomination of...


Flight paralysis from Canada hits Costa Rica’s tourism

QCOSTARICA - The paralysis of flights from Canada last January hit Costa Rica's tourism sector, as Canada was the second source market for tourists...

Today’s Vehicle Restriction June 24: plates ending in 7 & 8 CANNOT circulate

Today, Thursday, June 24, plates ending in 7 & 8 CANNOT circulate. The measure is countrywide and applied between 5:00 am and 9:00 pm, save...

American woman found lifeless in hotel bathroom in Sabana

QCOSTARICA - A sad discovery occurred this Thursday morning in a hotel located in La Sabana, in San José, the lifeless body of a...

Internet speed decreases during peaks in service

QCOSTARICA - Ever wonder why your surfing on the Internet slows down, to even a crawl, mainly in the evenings? This is due to...

New trends in coffee consumption challenge sector

QCOSTARICA - Changes in consumption habits in terms of times, types of preparation and specialties challenge the coffee sector. Most of the consumers in Costa...

Construction companies that paid alleged bribes would be disqualified for ten years

QCOSTARICA - If it is proven in a final judgment that they did pay bribes to Conavi officials, several companies could be disqualified from...

Today’s Vehicle Restriction June 21: plates ending in 1 & 2 CANNOT circulate

Today, Monday, June 21, we are back to the two plates that cannot circulate, in today's case plates ending in 1 & 2 CANNOT...

Full court decides not to investigate or dismiss Emilia Navas

QCOSTARICA - Emilia Navas will not be removed from her position as attorney general, after calls for her to step down due to her...

Tico tried to enter via San Jose airport with ¢93 million in cash

QCOSTARICA - A Costa Rican tried to enter the country through the Juan Santamaría International - San Jose Airport - with US$153,244 (the equivalent...


Get our daily newsletter with the latest posts directly in your mailbox. Click on the subscribe and fill out the form. It's that simple!

Log In

Forgot password?

Forgot password?

Enter your account data and we will send you a link to reset your password.

Your password reset link appears to be invalid or expired.

Log in

Privacy Policy

Add to Collection

No Collections

Here you'll find all collections you've created before.