UPDATE 1-Costa Rica sees 4.2% economic growth this year, 3.8% in 2024

(Adds background on the revisions, IMF loan and projection)

SAN JOSE, July 31 (Reuters) – Costa Rica’s central bank estimated that the country’s economy will expand by 4.2% in 2023, an upward revision of 0.9 percentage points compared to its previous forecast, the monetary authority announced in a statement on Monday.

The rosier scenario seen by the central bank, however, is at odds with a lower expectation for growth projected by the International Monetary Fund (IMF).

The bank’s revised economic forecast for this year comes as the entity expects growing demand from abroad for goods and services from the Central American nation’s manufacturing, agricultural and tourism sectors. The statement also noted that local consumers are seen contributing to higher economic growth.

Looking ahead to next year, the bank also pushed up by 0.2 percentage points its gross domestic product (GDP) growth forecast for 2024 to reach 3.8%, below the 2023 figure due to an expected decrease in exports triggered by weaker economic expansion globally.

Last month, Costa Rica unlocked about $519 million from the IMF to help fund programs aimed at economic reform and climate sustainability.

The IMF forecasts Costa Rica’s real GDP growth for this year at 3.0% and at 3.2% for 2024. (Reporting by Alvaro Murillo; Editing by David Alire Garcia)