Current Account Deficit Grows in Costa Rica
The latest results in the Balance of Payments, for the third quarter of 2010 show a significant growth in external imbalance.
Tuesday, January 4, 2011
The current account deficit grew 70% over the second quarter of that year. The main source of the imbalance is the excess of imports over exports. This deficit is partly financed by the surplus in the balance of services and at the level of balance of payments it is usually funded with income from foreign direct investment and other surplus items in the capital and financial accounts.
Central America: Selected statistics series, graphics and statistical bulletins.
Foreign direct investment (FDI), which for years has helped finance Costa Rica's current account deficit, fell by 28 percent in the first quarter of this year compared to the same period in 2007.
The agency has maintained its BB + rating with a negative outlook but again warned about the high fiscal deficit and the difficulties the country faces in passing a tax reform bill.
The organization is urging the Panamanian government to accelerate the measures needed to get off the gray list in order to avoid counterproductive medium-term effects on the economy.
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