Costa Rica: Central Bank Raises 2012 Growth Forecast

(Reuters) - Costa Rica's central bank on Tuesday raised its 2012 economic growth forecast for the Central American nation to 4.8% from a previous estimate of 3.8 percent.

The increase from the forecast made in January is mostly due to stronger-than-expected activity in the manufacturing sector, said Rodrigo Bolanos, president of the central bank.

"This is due to growth in demand in both the external and internal markets, but we forecast a slowdown for the second half of 2012," he said.

The central bank said it also expected inflation to remain at about 5 percent through 2013. The rate is now at 4.6 percent.

The economy of Costa Rica, a country famous for its beaches and tourism, grew by 4.2 percent in 2011.