 The Monthly Index of Economic Activity shows economic activity in March increased by 3.9% compared to the same month in 2020. - A.M. Costa Rica illustrative photo -  |
||||
  
 |
Published
Thursday, May 20, 2021
By the A.M. Costa Rica staff According to the Monthly Index of Economic Activity, IMAE, published by the Central Bank, economic activity in March increased by 3.9% compared to the same month in 2020. Also, during the first quarter of this year, from January to March, the bank reported a growth of 5.5% of the index in relation to the last quarter of 2020. These are clear signs that the economy continues to recover, economic authorities said.  According to the government, if Congress approves bill No. 22,433 to allow Costa Rica to receive more than $1.7 billion loan from the International Monetary Fund, the economic recovery process will accelerate. The deputies of the Finances Permanent Commission of Congress already pre-approved the loan in April. According to the Ministry of Finance, the loan will help the country recover and stabilize from the economic damage caused by the pandemic. "This would allow the country to consolidate macroeconomic stability and achieve sustained economic growth, with more and better jobs," the government said. Also, some economic indexes reported by different organizations such as the University of Costa Rica, the Costa Rican Union of Chambers, Associations of the Private Business Sector and the Central Bank, point to an improvement in the confidence and optimism of consumers and entrepreneurs. Another important index is the unemployment rate, which reduced from 24.4% in July 2020 to 18.7% in the first quarter of 2021. As more people find jobs and spend their money, the country will remain on the upswing of a financial crisis caused by the pandemic. The Central Bank's economic growth is projected at 2.9% this year. "In recent months we have seen clear signs that the economy continues to recover," Pilar Garrido, Minister of Planning said. The revisions in the economic growth projections respond, mainly, to a substantial improvement in the forecast for the international economy, which has a positive impact on the demand for domestic products, the government said in its statement. Furthermore, the government announced that in March and April the state income was higher than its expenditures, not including interest paid on government debt. One indicator of an increase in government income is the increase in the collection of Sales Tax, known as IVA, from 2.61% in March to 18.5% in April. However, despite the positive data, the government admits that interest payments on the State debts have continued to increase, reaching the highest level in history. This is the result of a continued increase in the central government's deficit balance. And there is a loan of $1.7 million waiting to be approved that will add to the already high government deficit. -------------------------- What should the government do to improve the economy and reduce the fiscal deficit? We would like to know your thoughts on this story. Send your comments to news@amcostarica.com  |
|||
|
|
