American Expatriate Costa Rica

GDP grew to 3.6% in the last quarter of 2016

Economic activity in the fourth quarter grew 3.6%, a result associated with the evolution of external demand (6.8%), which maintains the dynamism shown during the year, which in turn is associated with greater medical equipment, bananas, pineapples and services exports (5.9%).

According to data from the Central Bank, the final consumption of households was driven by the improvement in real disposable income and by access to bank financing through loans for consumption (10.8%).

By type of products, the consumption of real estate, housing and food services was highlighted along with imports of food, textiles and pharmaceutical products, as well as manufactured goods, such as detergent soaps and toilet preparations.

Government final consumption expenditure grew by 3.4%, as a result of an increase in public employment and in the purchase of goods and services, due to a more flexible recruitment policy that made it possible to fill vacancies in Institutions such as the Ministry of Public Education, the Ministry of Public Security and the Ministry of Health, among others, in addition to hiring health specialists from the Costa Rican Social Security Fund.

Gross fixed capital formation increased 0.9%, which is explained by higher investment in private works (residential and non-residential), consistent with the evolution observed in the construction industry. This behavior was mitigated by the reduction of investment in capital goods of imported origin related to equipment for electricity generation, industrial and heavy machinery and buses.

In the quarter, the change in inventories showed a share of GDP of 2.1%, thus implying a process of replenishment of inventories by companies.

crhoy.com