Costa Rica: Fiscal Situation up to May 2019

In Costa Rica, the central government's financial deficit at the fifth month of the year maintained its upward trend as a result of higher interest expenditure and stood at 2.6% of GDP.

Friday, June 14, 2019

While the behavior of the financial deficit is largely due to interest payments, the increase in capital spending also shows significant variation, which translates into better infrastructure conditions needed to facilitate the mobility of goods and people, explains a newsletter from the Costa Rican Ministry of Finance.

The document prepared by the institution explains that the little connection between the most dynamic sectors of the Costa Rican economy and tax collection has been observed for several years. This reaffirms the importance of broadening the value-added tax base to these sectors of the economy.

The newsletter reports that between May 2016 and the same month of 2019, the behavior of the financial deficit has reported a clear upward trend, going from 1.89% to 2.62%.

See full newsletter.

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Does Costa Rica Need More Fiscal Measures?

April 2019

For the IMF, the country "may need additional fiscal measures, focused on the short term, to alleviate financing pressures and improve debt dynamics.”

After analyzing the current economic situation in Costa Rica, the directors of the International Monetary Fund (IMF) commended the recent fiscal reform, which is important to restore fiscal sustainability.

Negative Outlook for Costa Rica's Debt

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The report "Fiscal policy, elite groups and the state in contemporary Central America" by the Central Institute for Fiscal Studies (Icefi), "recognizes how powerful the present elite groups are and how much influence they have in each of the countries.

Costa Rica Wants to be Like Greece?

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The debacle that has befallen Greece has been no impediment to its former Prime Minister Papandreou, who is touring the world giving advice on government and economy.

Public policy analyst Juan Carlos Hidalgo on his blog ‘Por la libre’ on offers an analysis of the Greek crisis and the accuracy with which the current government of Costa Rica is following in the footsteps of the failed Georgious Papandreou’s government.

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