Costa Rica lowers GDP growth forecast for 2022 to 3.4%

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The Central Bank of Costa Rica's headquarters are pictured in San Jose

SAN JOSE – Costa Rica lowered its economic growth projection for 2022 to 3.4%, down from the 3.9% set in January, the country’s central bank announced on Friday.

“The downward revisions reflect the more adverse external environment, characterized by high uncertainty, lower global growth and a significant deterioration in terms of trade on top of what was seen in 2021,” the central bank said in a statement.

The bank’s 2023 projection was also lowered to 3.9% from 4%, 10 days before former Economy Minister Rodrigo Chaves is set to succeed outgoing President Carlos Alvarado.

Costa Rica grew 7.6% in 2021 after suffering its worst contraction in 40 years in 2020 due to the effects of the COVID-19 pandemic.

(Reporting by Alvaro Murillo; Writing by Kylie Madry; Editing by Chris Reese)