Thursday, May 14, 2009

Costa Rica is in recession, Government and Central Bank recognize

Francisco de Paula Gutierrez(Photo:by Al Dia Newspaper)(Inside Costa Rica) - Costa Rican president, Oscar Arias, and the president of the Central Bank, Francisco de Paula Gutierrez, recognized yesterday that the country is in a recession.

Both, separately, confirmed the recession after two consecutive trimesters of negative economic growth. Gutierrez added that the Gross National Production may even be lower than then 2.2% forecast by the central bank at the beginning of the year.

"If there are drecreases in two consecutive trimesters, then, we are in a recession, but we should not be surprised. I always maintained that growth in 2009 could possibly be zero or even be negative", said Arias.

The president explained that the contraction in the economy has been in employment and could soon affect family income an poverty.

A number of Costa Rican economists agree with the statments of Arias and Gutierrez, adding the importance of defining the state of the economy for the country to face the reality and take measures against the situation.

Costa Rica's last recession was between 2000 and 2001. However, economists believe that this recession may be the worst faced by the country since 1982.

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