Macroeconomic Forecast Costa Rica

The Costa Rican tourist board reported a 7.8% rise in international tourists for Q111, an increase of 49,000 visitors. Tourism is a major contributor to the Costa Rican economy, contributing an estimated 6.7% of GDP in 2010, and we view the increase as a positive, especially given that the most important source market, the US, has been experiencing a shaky recovery from recession. Whilst we take a constructive outlook towards Costa Rica's tourist industry, we are still forecasting a slight slowdown in real GDP growth to 3.6% in 2011, as government consumption is cut in efforts to reduce the fiscal deficit over the coming years.

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