Costa Rica: More Robust, Yet More Vulnerable

CENTRAL AMERICA - Report 24 Feb 2015 by Francisco de Paula Gutiérrez and Felix Delgado

Executive Summary Economic performance is expected to improve slightly in 2015, compared to previous expectations, and, in some respects, compared to 2014. Despite mixed fiscal signals from the government, we don’t expect turbulent storms this year. External conditions are the main reason: stronger growth in the United States, and the fall of prices for oil and other raw materials. We now expect GDP to grow 3.2% this year, down from 2014’s 3.5%, but higher than our previous forecast of 2.1%. But inflation should return to the Central Bank´s target range, and the current account deficit is e...

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