American Expatriate Costa Rica

Economic activity experienced its worst growth in almost six years

According to the Central Bank, last May the national economy had its worst growth since November 2013.

Growth for May was only 1.3%, which is two percentage points (pp) lower than the same month of the previous year and 0.2 pp to the previous month.

In that month of November, growth was only 1.4%.

In May 2019, The agricultural activity, the commerce and the construction saw a reduction on production. In addition, except for financial services, all other economic activities registered a variation rate lower than the one observed in May 2018.

The severe deceleration is due to:

-Adverse climatic factors that have affected agricultural activity.
-Lower number of cultivated hectares and lower production of pineapple, due to the reduction in international prices, due to the worldwide increase in the exportable supply of this fruit.

-Sociopolitical situation in Nicaragua that impacted exports of goods from Costa Rica to that country and the rest of Central America.
-Uncertainty generated by the tax reform, according to consultations made by the Central Bank to entrepreneurs in the construction and trade industry.

crhoy.com