Trade Deficit Doubles; Sluggish Exports Blamed
Costa Rican exports slowed through July, lifting the trade deficit to $3.3 billion – nearly twice the trade deficit during the same period last year.
The Central Bank reported Tuesday on its Web site, www.bccr.fi.cr, that while exports in the first seven months of 2008 surpassed $5.7 billion, imports grossed just over $9 billion.
By July 2007, Costa Rica ran close to a $1.7 billion deficit, 96.5 percent below this year’s seven-month figure.
“(Higher trade deficit) was expected, but not in the magnitude we’re seeing,” said Betty Sánchez, of the bank’s economic analysis and consultancy department.
“What we’ve been seeing is a lower rise in exports largely due to lower foreign demand, and particularly the slowed growth in the United States, and, on other the hand, a higher value on imports,” During this year’s first seven months, exports rose only 6.3 percent above the 2007 total of just under $5.4 billion.
Imports through July, meanwhile, were up 27.7 percent over the $7 billion imported during the same period last year.
Costa Rica’s biggest sellers are computer chips, bananas, pineapples, medicine and medical equipment, textiles and coffee.
Sánchez explained import costs are being driven by the dramatic increases in fuel and basic grain prices in the past year.
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