The fall in economic activity is attributed to negative growth in agriculture, forestry and fisheries, the manufacturing industry, and financial and insurance activities.

In February, economic activity in Costa Rica increased 3.9 percent, almost 2 points below last February’s growth of 5.4 percent, according to the monthly index of economic activity (IMAE, Incide Mensual de Actividad Económica) calculated by the Central Bank of Costa Rica (BCCR), and well below January’s 4.6 percent rise.

This marks the third consecutive monthly deceleration according to the index, and the lowest reading since July 2016.

The BCCR expects the economy to expand 4.1 percent in both 2017 and 2018.

The decrease in economic activity was felt mainly in the manufacturing industry, which went from 5.80 percent growth in January to 0.20 percent in February. Construction declined to a 0.99 percent growth rate in February, and financial and insurance activities, which increased 11.86 percent in January, in February saw their growth contract to 4.99 percent. In addition, production in the agriculture, forestry and fisheries industries fell 4.27 percent in February.

Activities that have experienced some growth include professional, scientific, technical, administrative and support services, mining and quarrying, and trade.

In addition to the decrease registered in the IMAE, the Gross Domestic Product (GDP) also had a lower year-on-year change at the end of 2016, according to the latest BCCR data.

Production grew by 3.78 percent last December, less than the growth projected by the Central Bank in the Macroeconomic Program 2017-2018, which had been tagged at 4.3 percent.

Another disappointing indicator for the economy’s recovery is the 50 basis point increase in the Monetary Policy Rate (MPR) announced by the Central Bank on April 6, placing it at 2.25 percent due to pressures produced by inflation.