Growth in Costa Rica to be Higher than Expected in 2014

Costa Rica would grow slightly higher than expected next year according to the Central Bank; thanks to the international economy that achieved a better recovery then expected and local interest rates that will remain low and stable.

By 2014, the real GDP growth will be between 3.80% and 3.95%, which would be higher than projected by the Central Bank (3.7%) and close to what was estimated by International Monetary Fund (IMF) (3.8%).

Inflation is expected to remain at the current level (between 4.50% and 5.0%) and interest rates remain stable at least in the first half of next year, the same is projected for the exchange rate on the dollar.

A recovery in industrial production in the United States, along with a recovery in Europe, should help the growth zones of Costa Rica.

The elements that could create barriers to 2014’s projected growth is the growth of public debt and fiscal deficit as well as the possibility of the new tax reform. If the country fails to agree on the reform that could affect its International credit rating and cause difficulties.

Internationally, the United States could exceed estimated growth (2.5%), which also positively emerging economies such as Costa Rica in 2014. Also, the Federal Reserve (Fed) will continue with its policy of monetary easing, possibly until 2015, which will keep international interest rates low.

Credits for this go to the english Costa Rica News Paper and their respective authors.