Costa Rica’s Economy Poised for 4.5% Growth in 2024

Costa Rica’s economy is on track to grow by 4.5% in 2024, an improvement from the earlier estimate of 3.4%, according to the latest forecast by the University of Costa Rica. This positive adjustment highlights the nation’s resilience and potential amid global economic uncertainty.

Key Drivers of Growth

The régimen definitivo (final goods regime) plays a significant role, contributing 76% of the anticipated growth. Additionally, the recent announcement of lower interest rates in the United States is expected to boost investments and Costa Rican exports, further strengthening the economy.

Encouraging Trends

• Exports have surged by 8.6% in the past 12 months, reflecting robust demand for Costa Rican goods.

• Labor productivity and employment are on the rise, with a 3.6% increase in occupation between May and July 2024.

• Investment has rebounded after several quarters of negative performance.

Cautious Optimism

Despite these gains, challenges remain. Economists caution about risks like geopolitical instability and the potential impacts of climate phenomena. Additionally, household consumption, the primary driver of internal demand, has shown a slight deceleration.

Looking Ahead

Costa Rica’s ability to balance external opportunities and domestic challenges will be crucial in sustaining this upward momentum. As the nation continues to improve its investment climate and capitalize on favorable global trends, the outlook remains optimistic for 2024.

This promising forecast reflects Costa Rica’s growing economic dynamism, making it an exciting time for local and international investors alike.Costa Rica’s Economy Poised for 4.5% Growth in 2024

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