Impact on the global economic forecast in 2017 on some of Costa Rica´s key sectors
Costa Rica is ranked 60 in the Doing Business rating of the World Bank in 2016. In comparison to other Latin American countries, Costa Rica stands as an upper middle income economy. How will the International Monetary Fund (IMF) predictions about a global economy growth of 3.4% in 2017 with less expectations for Latin America affect Costa Rica?
Latin American countries expect lower growth than the global economy due to uncertainty of the market and increase in protectionism of the international markets. Latin America is expected to grow only 1.2% in 2017. However, Costa Rica has maintained a healthy growth pattern in the last decade and it expected to grow 4.25%.
Some sectors of the Costa Rican economy continue to thrive. This is the case for service centers for business process operations of multinational companies which continue to expand in the country, such as the case of Convergys opening a 3rd site in San Jose expecting to reach a total of 5500 employees. Construction work, which had decreased growth in 2016, is expected to regain momentum. San Jose is trending vertical. Apartment buildings and office spaces (12 to 25 stories high) are rapidly establishing in the central part of the city and expanding in the western residential areas, changing the city´s landscape.
Despite the vulnerability and the rising possibility of some indicators such as the exchange rate, interest rates, and increased inflation, Costa Rica still stands as a healthy growing economy in the Latin American underperforming scenario.