Costa Rica: Lower Growth Estimate than Central Bank

It is unlikely that domestic production will increase by more than 4%, said Aldesa analyst Adriana Rodriguez, given the economic slowdown in the agricultural and manufacturing industry coupled with the lower projected growth in the United States. The analyst added that the services and construction sectors will remain the engine of economic recovery.

"On the other hand, Aldesa indicated that inflation will hover between 5.5% and 6%, which makes it likely that the Central will achieve its goal set in January (5% plus or minus one percentage point).

This is because the increase in prices recorded up to now is product of more than just international inflation (its also affected by rising commodity and oil prices) rather than local inflation, which also reinforces the idea of the Costa Rican economy continuing to show signs of weakness.", writes Edgar Delgado in Elfinancierocr.com

Source: elfinancierocr.com

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