Central Bank Projects Export Decline but Balance with Higher Profits

Port of Limon Costa Rica

Rodrigo Bolaños, President of the Central Bank of Costa Rica (BCCR), said this year may reduce the level of the country’s exports, the result of global economic conditions, coupled with slower growth in the international economy.

According to Bolaños, lower sales of goods also give a lower level with the products imported by Costa Rica. However, although expected lower imports, the Central will “concerned about the rise in the price of raw materials.”

A study of Saxo Bank, the improvement in economic growth expectations, the risk reduction in the political order, the continued aggressive monetary policies and a weaker dollar against most currencies will impact on a increase in the cost of raw materials.

For example, the price of key crops such as corn and soybeans began to increase in January after a major sell-off in the second half of 2012 to improve forecasts of supply.
In the macroeconomic program, the BCCR projected current account deficit as a share of GDP is 4.9% for the 2013, the figure is $ 2,440 million financed by foreign investment and capital inflows to the country.

However, although the Central Bank projected a lower level of exports, the Ministry of Foreign Trade await while performing an assessment of the economic performance of the major trading partners of Costa Rica.

Anabel Gonzalez, Minister of Foreign Trade, said he prefers “not to venture” to give details of how it will behave the sale of national assets, pending a study of how key economic variables evolve. The Minister added that the national export performance has been excellent, so this year is expected to maintain a similar level to 2012.

During the previous year, although Costa Rica exported a total of 16.875 million worth of goods and services (8.9%), the growth is less than the 9.6% recorded in 2011 in relation to the previous year. In addition, exports grew definitive arrangements shown half the growth in 2011.

While there may be a decline in the coming year in terms of experts also state that there is a balance to be had because the costs of goods exported are expected to rise as well.

The Costa Rica News (TCRN)
San Jose Costa Rica

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