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Economy Risks Overheating
The domestic production will
increase this year by 6.8
percent -much more than early
estimates - , but there are
worries about the possibility of
an overheating of the economy.
This was made public by the
chairman of the Central Bank,
Francisco Gutiérrez, in a press
conference where he announced
the review of the monetary
program for 2006-2007, which
contains the economic
projections, goals and policies
of the institution for this
period.
Gutierrez pointed out
that even though there is no
overheating as such, yellow
lights are blinking.
One such
“yellow” light is the increase
above 5 percent, as an average,
that the Gross Domestic Product
(GDP) has experienced in the
last three years, which will
continue in 2006.
According to
studies by the Bank, the
productive structure of Costa
Rica allows for a steady yearly
4.5 percent average rate of
growth, but it is growing faster
than that.
Gutierrez admitted
that the average citizen does
not experience the boom, because
the national gross income – which
does not include the income that
foreign companies send abroad –
grows less than the GDP.
Moreover, analysts said, the
monetary program tells heads of
household that prices will keep
on rising.
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