Costa Rica's Fiscal Deficit Will Be 6% of GDP in 2014

The country ranks third in Latin America in terms of the difference between income and expenditure in relation to GDP.

Monday, August 12, 2013

In 2012, government revenues totaled 14.4% of GDP while expenditures were 18.8%.

Data from the Economic Commission for Latin America and the Caribbean (ECLAC), reveals that compared with 2007 figures the country shows a significant deterioration . "... While last year the deficit was 4.4% in that year there was a surplus of 0.6%. Revenue was 15.5% of GDP and expenditure of 14.9%," noted an article in

The situation could be more critical this year when taking into account the provisions of the Central Bank estimating that the deficit will close at 5% and analysts who calculate 6% for next year. The economist Fernando Rodriguez points to two factors that have deteriorated to the country. The first is that expenses have increased and the a level of collection has not reached what it was in 2008,15.4% (13% is projected for this year)

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In January 2014, current account expenditure increased by almost 8% compared to January 2013, with the category of Remuneration up 11%.

The monthly figures from the Central Government Revenues, Expenditures and Financing report published by the Ministry of Finance of Costa Rica, shows that the increase in total revenues in January 2014 was almost 11%, which meant a reduction in the fiscal deficit financial compared to GDP of 0.7%.

Costa Rica's Fiscal Deficit: Official Projection Falls Short

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According to the Fiscal Studies Program by the School of Economics at the National University of Costa Rica, this projection was based on total tax revenues increasing by 8.7%, taking into account a lower tax income and Customs taxes (due to a fall in imports) and also an increase in total expenditure of 11.5%.

Costa Rica Ends 2011 With Fiscal Deficit of 5.6%

December 2011

This will be the second consecutive year that Costa Rica has the highest fiscal deficit in the region.

The International Monetary Fund states that the difference between revenues and expenditures of the government of Costa Rica at the end of 2011 amounted to 5.6% of GDP. The Finance Minister Fernando Herrero said that this deficit is 5%.

Costa Rica: Public Spending Up 18%, Revenue 5%

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In the first five months of 2010, the fiscal deficit was $670 million, 86% more than the same period of 2009.

An article in notes that “the deficit accounted for 1.93% of the country’s production. The Treasury expects the deficit to represent 4.8% of the GDP by the end of the year”.