Macroeconomic Forecast Costa Rica

Early signs of improving domestic demand are beginning to bite at Costa Rica's merchandise trade balance, as import growth accelerates to 37.6% year-on-year (y-o-y) in March, compared to an average growth rate of -24.7% y-o-y throughout 2009. Exports, though up 18.0% y-o-y during the same month, are expanding at a more moderate clip, which has already seen the trade deficit widen over 70% y-o-y in the first quarter of this year. Reaching 8.8% of GDP in 2009, we are projecting a trade deficit of 12.4% of GDP this year and 11.5% in 2011.

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