Regional Bank Forecasts
5% Growth in Costa Rican
Economy For 2008
The Banco
Centroamericano de
Integración Económica (BCIE)
estimates that Costa
Rica's Producto Interno
Bruto (PIB) - Gross
National Product - will
increase between 4% and
5% for 2008 over 2007.
The estimate was
presented by Pablo Rodas,
an economist for the
BCIE, in its “Informe
Tendencias y
Perspectivas Económicas
2008” report for Central
America.
The estimate means Costa
Rica's production will
slow down in 2008 after
experiencing a 6.3%
growth in 2007 over
2006.
The slow down, according
to Rodas, is a result of
the effect of the slow
down and possible
recession in the economy
in the United States.
"The deceleration of the
U.S. economy will impact
exports from the region
to its principal trade
partner", said the BCIE
report.
Another factor expected
to slow down the
regional economy is the
reduction of money sent
home from Central
Americans living and
working in the United
States.
The BCIE report also
expects a slow down of
American tourists
visiting Costa Rica,
which will reduce the
amount of dollars coming
to the country.
The BCIE report
coincides with the Banco
Central de Costa Rica (BCCR)
- Costa Rican Central
Bank - pegging the 2008
inflation at 8%.
Inflation in 2007 was
10%.
One the reasons cited
for the decreased
inflation is the
expectation that the
international price for
oil will not increase
and will not affect the
Índice de Precios al
Consumidor (Consumer
Price Index).
The BCIE says that the
growth of the Costa
Rican economy will be
second most important in
the region, bettered
only by Panama, which is
forecast to have a 7.5%
yo 8.5% growth in 2008. |
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