IMF's Estimates For Costa Rica Far From Reality

Someone is wrong: either the IMF or reality. But the latter is the perception also shared by most economic agents in the country. If there isn't substantial change, IMF projections will miss by a large margin.

High production costs, which reach as much as 40% according to Mónica Araya, president of the Chamber of Exporters, are suffocating companies, and the worst culprit is the appreciation of the local currency versus the dollar.

An article in Misfinanzasenlínea.com, by María Morales, explains that "the weak growth of the national economy is explained mainly by the slowdown in the manufacturing and agricultural sectors ... last year 300 companies from the agricultural and industrial sector shut their doors...".

Source: Misfinanzasenlinea.com

More on this topic

Panama's Economy Grew 7.5% in 2010

March 2011

The Panamanian Economy grew 7.5% in 2010, reaching a gross domestic product (GDP) of $ 20.862.000.

Production of goods and services in Panama saw an increase of 7.5 percent over the previous year.

GDP at constant value of 1996 prices, according to INEC estimates, registered $ 20,862.9 million, showing an annual increase of $ 1.448.8 million.

Panama: 2009 Results by Sector

December 2009

The country's economy grew a remarkable 2.5%, fueled mostly by the construction industry and domestic demand.

On the other side, agriculture was one of the sectors most affected by the crisis, specially by the drop in foreign demand, and by losing a series of tariff benefits under the European SGS-Plus system.

World Economic Outlook Update

January 2009

Global Economic Slump Challenges Policies. World growth is projected to fall to ½ percent in 2009, its lowest rate since World War II.

Despite wide-ranging policy actions, financial strains remain acute, pulling down the real economy. A sustained economic recovery will not be possible until the financial sector's functionality is restored and credit markets are unclogged.

Construction grew 54.5% in June in Panama

August 2008

The value of construction, repair, and extension permits approved during the first half of the year was at $829.8 million.

Most of the investments are located in the district of Panama, with $675 million (58.5% more than the year before); this is followed by Arraijan, which, with $44 million, had the biggest increase in the country (161.3%).