Although the Alvarado administration reversed the initial proposal to ask the IMF for $1.75 billion in financing and called for an inter-sectoral dialogue, Costa Rica is semi-paralyzed by the blockades that are taking place on various roads in the country.
At the height of the pandemic and economic crisis, the Costa Rican president announced, on a national chain, an economic recovery plan with no clear direction, no assigned leaders and no concrete actions.
In the message broadcast on the night of July 12, President Carlos Alvarado vaguely explained part of the plan to be adopted to overcome the health and economic crisis generated by the spread of covid-19.
In the context of the protests and blockades that have been affecting Costa Rica for several days, the businessmen denounce that there are millions of losses, mainly in tourism, exports, and agricultural, industrial and commercial activities.
According to Fitch Ratings, the fiscal outlook still faces considerable uncertainty in Costa Rica, despite the promise of President-elect Carlos Alvarado to carry out comprehensive reforms to reduce the deficit significantly.
In the view of the ratings agency, "... President-elect Carlos Alvarado's strategy for the future is not yet clear. Pressing the smaller 'fast track' bill might be politically easier, but it could reduce the urgency around additional reforms; Supporting a larger package could be more politically difficult."