The Central Bank of Costa Rica (BCCR) has lowered its economic growth projections for both 2026 and 2027, signaling a more cautious outlook for the Central American economy.
The downgrade, detailed in the Monetary Policy Report (IPM) released on July 30, attributes the weaker trajectory to a moderation in domestic consumer spending and a slowdown in external demand.
This adjustment follows a period of financial strain for the local banking sector, which reported a sharp decline in profits during the first half of 2026.
This adjustment follows a period of financial strain for the local banking sector, which reported a sharp decline in profits during the first half of 2026.
The profitability squeeze was largely driven by the depreciation of the US dollar against the Costa Rican colón, which eroded the value of foreign-currency assets and increased funding costs for private banks.
The growth downgrade reinforces the rationale behind the BCCR’s recent monetary easing.
The central bank previously cut its benchmark interest rate to 3.00%, marking the first reduction in seven months.