SAN JOSE, (Reuters) – Costa Rica has lowered its 2022 economic growth forecast to 3.4% from 3.9% in January. This was announced by the central bank of the country on Friday.

In a statement, the central bank explained that “the downward revisions reflect a more adverse external climate, characterized by high uncertainties, lower global economic growth, and a significant decline in terms of trade on the top of what was observed in 2021.”

Also, the bank’s projection for 2023 was lowered from 4% to 3.9% 10 days prior to former Economy Minister Rodrigo Chaves who is expected to succeed outgoing President Carlos Alvarado.

After experiencing its worst contraction for 40 years in 2020, Costa Rica experienced 7.6% growth in 2021. This was due to the COVID-19 pandemic.