Steady growth in public construction sector

Public construction sector records a steady growth since 2007. In January 2009 growth increased by 21% than in the same month the year before.

These statistics are investigated by the index of monthly economic activities from the Costa-Rican central bank. This indicator makes for a monthly estimation of changes in production and investment.

One of the factors for this positive impulse in the construction sector is the improved capacity in execution of the regarding projects. For example the public health insurance (Caja Costarricense de Seguro Social) has the second largest budget of all public institutions. 57.5% of this budget was used for new construction projects in 2006. According to information from the institution, this rate increased to 94% in 2008.

The institution for electricity and telecommunication (Instituto Costarricense de Electricidad) has the third largest budget of public institutions and invested 84% in 2006 in construction projects. This value increased to 90% in 2008. The growth in the public sector compensates the current decrease in the private sector, which was 8% in 2008. Regarding the Costa Rica real estate market, the improved infrastructure will generate a good appreciation in future.