Costa Rica: The economy accelerates in July
Annual economic growth in cyclically-adjusted terms accelerated to 1.5% in July from June’s revised 1.3% (previously reported: +1.5% year-on-year), nevertheless, economic activity remained subdued by historical standards.
Although economic growth ticked up in July, partly on strong activity growth in the ICT sector, it was still hampered by a continued decline in activity in the agriculture sector, which is struggling following a prolonged spell of dry weather, partly due to the El Niño effect. In addition, construction activity slumped notably due to uncertainty caused by the fiscal reform bill, according to a survey conducted by the Central Bank.
In month-on-month terms adjusted for working days, economic activity increased 0.2% in July, matching June’s growth. Annual average growth, meanwhile, slowed to 1.8% in July from 1.9% in June.