Costa Rica in 2018: Fiscal Deficit Closed at 6% of GDP

The financial deficit of the Central Government at the end of last year was equivalent to 6% of the Gross Domestic Product, 1.2% less than originally expected.

Monday, January 21, 2019

According to the authorities, the fiscal deficit as a proportion of GDP was lower than expected because of the measures taken in terms of collection, expenditure containment and efficiency, and the approval of the Law to Strengthen Public Finances. See "Tax Reform: First Step" and "Ambitious Plan for External Debt"

From the Ministry of Finance report:

The 2018 fiscal deficit closed at 6.0% of GDP, a reduction of 1.2% from the expected 7.2% of GDP. The results are the product of unprecedented decisions to contain spending, combat tax evasion and efficiency promoted by the Administration, as well as the approval of the Law to Strengthen Public Finances.

In announcing the information, the President of the Republic, Carlos Alvarado Quesada, and the Minister of Finance, Rocío Aguilar Montoya, commented that these fiscal results at the 2018 closing reflect the Government's unequivocal commitment to reorganize public finances.

Both leaders gave a press conference at the Juan Santamaría International Airport, prior to the President of the Republic's working tour to Davos, Switzerland, where he will participate along with heads of state, leaders of organizations and businessmen from more than 100 countries in the World Economic Forum on the challenges of the Fourth Industrial Revolution.

Read full report (In Spanish).

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