American Expatriate Costa Rica

Economy will grow less in the second half of the year

The second half of 2016 will see a slowdown in economic activity as a result of the global slowdown and therefore of the main trading partners: the United States and Europe.

The IMF and the World Bank now forecast less than 4% of production growth at the end of the year, despite the Central Bank relaxing its monetary policy stance since early 2015, allowing increases in several areas, such as industry and services.

The lower growth, however, should not affect household consumption. The economist Melvin Garita explained that raw materials should have a relatively flat performance.

For the rest of the year, inflation levels are expected to leave the negative territory, to eventually converge to the goals of the Central Bank, about 3%.

Interest rates, on the other hand, will respond to a political gamble, to be taken in the Legislature.

crhoy.com