Costa Rica: Economic activity moderates in August
October 13, 2011
In August, economic activity increased 3.3% over the same month last year, according to the monthly index of economic activity (IMAE, indice Mensual de Actividad Economica). The reading represented a deceleration compared to the revised 3.6% expansion observed in July (previously reported: +3.9% year-on-year). The main driver behind the monthly slowdown was a deceleration in manufacturing, agriculture and hotels sector. A month-on-month comparison, however, does not corroborate the notion that the recovery is losing steam, as economic activity rose 0.33% over the previous month in seasonally adjusted terms, which was slightly up from the 0.31% expansion recorded in July. Furthermore, the trend continues to point upwards, as the annual average growth in economic activity rose from 4.0% in July to 4.3%, the highest level since October 2008. The Central Bank projects the economy to expand 4.0% this year and 3.9% in 2011.