IMF forecasts 3.8% growth in Costa Rica economy for 2015

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April 15^th, 2015 (InsideCostaRica.com) The International Monetary Fund (IMF) estimates that the Costa Rican economy will grow by 3.8% this year in its Global Economic Prospects report released Tuesday.

The forecast slightly exceeds an earlier estimate by Costa Rica’s Central Bank, which predicts the economy will grow by 3.4% this year.

The IMF’s estimate for Costa Rica is weaker than for its neighbors Nicaragua and Panama, where the IMF forecasts growth of 4.6% and 6.1%, respectively; as well as Guatemala, forecast to see 4% growth in its economy.

Behind Costa Rica are Honduras and El Salvador, where the IMF forecasts economic growth of 3.3% and 2.5%, respectively.

The economies of Central America, which the IMF estimates will see an average of 4.2% growth this year, are faring better than Latin America as a whole, which the IMF estimates will witness modest growth of just 0.9% this year.

The recession in Brazil and weak commodity prices that have plunged Venezuela’s economy into crisis are largely responsible for Latin America’s sluggish growth, according to the IMF.

“Falls in commodity markets will remain of the biggest drags on economic activity in South America, although cheaper oil and the US recovery give impetus to other economies in the region,” according to the IMF.

Venezuela’s economy has been hard-hit by falling commodity prices.  Its economy is expected to contract 7% this year and witness runaway inflation of some 97%.