Domestic Production Has Grown 4.8% Since the Start of the Year ⋆ The Costa Rica News

Domestic production, as measured by the Monthly Economic Activity Index (IMAE), grew at a rate of 4.8% so far this year. This figure represents an acceleration of 0.3 percentage points compared to the same period last year.

The Special Regime recorded a 9.8% increase in its economic activities.

“The medical device manufacturing sector stands out, even though it experienced a year-over-year slowdown during the month in question,” states the report released by the Central Bank of Costa Rica (BCCR).

The agricultural sector recorded its fifth consecutive month of production growth. In January, the increase was 2.8%, reflecting a recovery following a year in which crops were affected by adverse weather conditions.

“This month’s results can be attributed to increased production of short-cycle agricultural crops (vegetables, root vegetables, and tubers), as well as certain crops intended for the export market (pineapple, watermelon, and cantaloupe), whose production benefited from a favorable combination of temperatures and rainfall,” adds the Central Bank. Bananas and coffee continue to face challenges due to pests and fungi, such as black sigatoka and anthracnose, respectively, which led to a reduction in yield per hectare.

In the construction sector, output rose by 2.5% due to increased activity on public works projects, such as those under the Emergency Program for Comprehensive and Resilient Infrastructure Reconstruction (Proeri).

Aggregate output in the hotel and restaurant services sector, both of which are linked to the performance of domestic tourism, improved by 3.2% in January.

“This result is linked to growth in food services (especially fast food) and the recovery in lodging services, the latter driven by a 7.9% increase in international tourist arrivals, according to the Costa Rican Tourism Institute,” reported the BCCR.

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