The Costa Rican economy is still in the doldrums. As of July this year, the growth rate was only half of what it was a year ago.
The latest figures of the Monthly Economic Activity Index (IMAE) revealed by the Central Bank, reflect a growth of just 1.5%. The pace is slightly better than a month earlier at just two tenths of percentage points.
The good news is that the speed at which the economy has been slowing down year-on-year is the lowest of the last four months. This means that the rate of decline slowed, without implying that the downward direction has changed.
For services, the manufacturing sector grew 2.7%, driven by the greater external demand for medical implements. However, this was not the case within the entire sector. In fact, the construction sector is the most affected, with a negative variation of 10.7%.
The construction sector, as in previous months, decreased 10.7% in July 2019, mainly due to the lower residential and commercial work, as a consequence of the uncertainty generated by the fiscal reform coming into effect, according to inquiries made by the Central Bank to entrepreneurs in the construction and commerce industry,”
said the Central Bank.