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.
"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.
The main challenge faced by the Costa Rican economy is its infrastructure deficit, said think-tank 'Academia de Centroamérica'.
In its study "Obstacles for economic growth in Costa Rica", they analyze 4 key issues: Costa Rica's Economy in 2008 Role of Infrastructure in Costa Rica's economic development Role of Education in Costa Rica's economic development