San José, Costa Rica, since 1956

Costa Rican economy to see less growth in 2013, World Bank says

Costa Rica will grow 4 percent this year, a lower figure than the 4.6 achieved last year and the 4.8 expected for 2013 by the Central Bank.

The World Bank released this week its annual report of Global Economic Prospects, which forecasts that the country will see the third-best economic performance in Central America, surpassed by Panama, whose economy is expected to grow 7.5 percent, and Nicaragua, expected to register 4.2 percent growth.

The analysis notes that the “dependence of Costa Rica on the U.S. and Europe is a factor in the reduction of national growth,”and also that “the fall in the dollar exchange rate caused contraction of growth, especially in the export sector.”

The bank forecasts that El Salvador’s economy will experience the least growth in the region, with 2.3 percent.

Central America’s economic performance is expected to slow somewhat due to a relatively weak U.S. economy. A modest recovery in the U.S. housing sector will provide some support to remittances, although sluggish improvement in labor markets and lower net migration to the U.S. will keep remittance growth subdued, the report added.

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