Costa Rica Economic Activity July 2022

Economic activity rose 0.5% year-on-year in July, down from the 4.1% increase in June. The July result was the worst reading since February 2021. The marked deterioration was mainly driven by the downturn in the manufacturing and construction sectors. Meanwhile, agriculture, forestry, and fishing have declined at a more moderate rate, while retail growth has lost steam.

Higher interest rates, double-digit inflation and the negative consequences of a cyber attack continued to weigh on activity in July. However, the revival of tourism has likely boosted activity.

On a monthly basis, economic activity expanded 0.7% in July. Meanwhile, the trend pointed to decline, with the average annual growth of economic activity reaching 8.0%, down from 9.4% in June.

FocusEconomics panel members see the economy expanding 3.6% in 2022, unchanged from last month’s forecast, and 3.0% in 2023.

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