Costa Rica GDP

Costa Rica

Costa Rica: GDP growth accelerates in Q3 on the back of domestic demand

December 30, 2015

In the third quarter of 2015, GDP expanded 3.0% over the same period of the previous year, coming in above Q2’s 2.7% increase and marking the strongest expansion in one year. The acceleration reflects that a drastic deterioration in the external sector was offset by a notable improvement of domestic demand.

In Q3, domestic demand increased from Q2’s 5.8% rise to a much stronger 7.4% expansion, which marked the strongest pace of growth since Q1 2011. Total consumption expanded 4.7% in Q3 (Q2: +4.5% year-on-year), which was also the fastest pace since Q1 2011. Private consumption rose 4.9% (Q2: +4.6% yoy), while government spending recorded a 3.1% expansion in Q3, down from Q2’s print of 3.4%. Gross fixed investment went down from Q2’s 14.9% expansion to 11.3% in Q3. Total investment, on the other hand, soared from Q2’s 9.2% expansion to 15.0% in Q3, marking an almost-four-year high.

On the external side of the economy, exports of goods and services registered an 8.6% contraction in Q3 (Q2: -7.4% yoy). Imports also contracted, falling 1.6%, which was up from Q2’s 2.5% decrease. As exports dropped at a faster pace than imports, the external sector’s net contribution to overall growth deteriorated further to minus 3.9 percentage in Q3 (Q2: -2.8 percentage points). As a result, the external sector’s contribution to GDP is now at the lowest level since Q1 2011.

The Central Bank expects the economy to expand 4.2% in 2016. Met the why particular Consensus Forecast panelists expect GDP to expand 3.6% in 2016, which is unchanged from last month’s projection. For 2017, participants see economic growth accelerating to 3.8%.

Author: Jean-Philippe Pourcelot, Economist

Sample Report

Looking for forecasts related to GDP in Costa Rica? Download a sample report now.


Costa Rica Economic News

  • Costa Rica: Economic activity growth accelerates in December

    February 9, 2018

    In December, year-on-year growth in economic activity accelerated to the fastest pace in 11 months, increasing from a revised 3.2% in November (previously reported: +2.4% year-on-year) to 3.5%, according to the monthly index of economic activity (IMAE, Indice Mensual de Actividad Económica) published by the Central Bank of Costa Rica (BCCR). December’s result was underpinned by increased activity in the services and manufacturing sectors.

    Read more

  • Costa Rica: Inflation decelerates in January

    February 7, 2018

    In January, consumer prices increased 0.41% month-on-month, down slightly from December’s 0.47% increase.

    Read more

  • Costa Rica: Economic activity growth picks up in November

    January 11, 2018

    Annual growth in economic activity increased from a revised 2.2% in October (previously reported: +2.3% year-on-year) to 2.4% in November last year, according to the monthly index of economic activity (IMAE, Indice Mensual de Actividad Económica) published by the Central Bank of Costa Rica (BCCR). Although November’s annual growth rate was the highest in three months, it was low by historical standards.

    Read more

  • Costa Rica: Inflation accelerates in December

    January 8, 2018

    In December, consumer prices increased 0.47% month-on-month, up from November’s 0.16% increase.

    Read more

  • Costa Rica: GDP growth slows in Q3 on lower investment

    December 22, 2017

    The economy lost steam in Q3 as fixed investment contracted sharply amid higher interest rates and increased uncertainty.

    Read more

More news

Search form