Analysis by Region - Emerging Markets - Costa Rica
We've nudged up our forecast for Costa Rica's GDP growth this year by 0.2ppts to 3.7% as investment figures surprised to the upside in Q2 2024. However, consumption has slowed down amid lower growth in real incomes and higher unemployment. Meanwhile, export growth has eased due to base effects. We expect GDP to expand 2.3% in 2025. Our GDP growth forecast for 2024 is in line with consensus, but lower for 2025.
Costa Rica: Higher fiscal deficits are not a cause for concern