According to the Central Bank, Costa Rica's economy could grow 3.2% this year, less than was initially expected, and the fiscal deficit could reach 7.2% of GDP.
In its revision of the Macroeconomic Program 2018-2019, the Central Bank of Costa Rica (BCCR) foresees that this year's GDP growth will be 3.2%, below what was estimated in the Program presented at the beginning of the year, when the monetary authority projected growth of 3.6% at the end of the year.
In spite of the economic progress that has been achieved in Costa Rica, employment growth has stagnated, results in education are deficient, and anti-competitive regulations continue to hinder business development.
The latest OECD economic study on Costa Rica details the factors that support the significant socio-economic achievements of the last decades, as well as the pending challenges to ensure sustainable and more inclusive growth.
Report of Costa Rica´s performance, through the selection, measurement and evaluation of a set of variables that include social, economic, environmental and political aspects of development.
Overview of the State of the Nation Report 2015:
In the past five years, the State of the Nation has warned about the severity of the problems that threaten the sustainability of human development, the political system's inability to find answers and the need to correct the country's course. Therefore, in 2011 it was stated that behind the political and economic stability a wearing down of Costa Rica's historical progress could be detected. In 2012 the absence of solid progress was noted and in 2013, the existence of myths about the "country we are," which led to do the same actions being repeated with different results expected. Last year, the Twentieth Report stated that it was the end of an era and the political system was being called on to lead the transition with minimal confrontation and costs for the weaker groups.
"The ongoing economic recovery in the United States and persistence of relatively low oil prices will provide favorable tailwinds to the region.Because of supply constraints, the region is expected to maintain a moderate pace of growth in coming years."
From the press release by IMF:
Central bank governors, finance ministers, and banking superintendents of Central America, Panama, and the Dominican Republic, and senior IMF officials met in El Salvador on July 23-24 to review the economic outlook for the region and strategies to strengthen policy frameworks and raise inclusive growth. The regional conference saw the participation of the President of El Salvador, Salvador Sánchez-Cerén; Governor of the Bank of México, Agustín Carstens; Director of the Netherlands Bureau of Economic Policy Analysis, Laura van Geest; and former Finance Minister of Perú, Luis Carranza.
For the eleventh consecutive month economic activity continued to lose strength, recording in April a growth rate of just 1.68% compared to the same month in 2014.
From a statement issued by the Central Bank of Costa Rica (BCCR):
In the first quarter of 2015 (I-trim-15); the country's production, measured by the cycle trend of the Monthly Economic Activity Index (IMAE), recorded an average variation of 2.0%, lower by 1.7 percentage points (pp) than the figures observed in the same period in 2014.
Despite being reduced compared to 2013, the IMF insists that the fiscal deficit remains a thorn in its side for preventing the economy from reaching its full potential.
From a statement issued by the International Monetary Fund (IMF):
January 30, the Executive Board of the International Monetary Fund (IMF) concluded the Article IV consultation1 with Costa Rica.
In the region the level of sales tax evasion is around 33% on average.
From a statement from the Central Institute for Fiscal Studies (Icefi):
The Central American Institute for Fiscal Studies presents the seventh edition of its analysis of the situation in Costa Rica.
Icefi: It is urgent that the two contending political parties specify a plan that will allow them to balance fiscal accounts and fulfill their campaign promises.
Analysis of debt sustainability in Central America, economic growth, inflation, revaluation and management of the fiscal deficit.
Central America Fiscal Lens No. 5 reported that gross domestic production in Central America in 2012 amounted to U.S. $184.000 million. The fastest growing economies were Panama, Costa Rica and Nicaragua.
As for exports, although they grew by 7.1%, they were quite far from the 20.5% achieved in 2011.