No menu items!

COSTA RICA'S LEADING ENGLISH LANGUAGE NEWSPAPER

HomeArchiveMacroeconomy remains stable, IMF renews program

Macroeconomy remains stable, IMF renews program

Year in Review

This year’s modest 3 percent economic growth, driven mostly by exports, helped Nicaragua maintain solid macroeconomic finances in 2010, allowing the International Monetary Fund (IMF) to approve the government’s final program revisions in November and extend its financial assistance program through 2011.

Though inflation is slightly above this year’s goal of 7 percent, as of mid December it appeared that inflation numbers would remain in the single digits for the year.

Exports grew 37 percent in 2010 and were expected to reach $1.9 billion by year’s end. Foreign-reserve levels remained stable at $1.6 billion.

Nicaragua’s free-trade zone sector also demonstrated strong recovery this year, and is expected to reach 88,000 jobs by next year. Investment is also recovering, expected to close the year at $500 million in foreign direct investment (slightly shy of the country’s 2008 pre-economic crisis record).

However, there are still some doubts being raised about the Sandinistas’ management of the economy.

Economists worry that the government, despite its socialist claims, is not investing enough in education and health, which will receive .5 percent less funding in next year’s budget.

The IMF is also demanding the government open its books on Venezuelan aid, which totals $1.44 billion since 2007. Of that amount, only $436 million is stipulated as donations.

The IMF and opposition economists worry the aid is in the form of secretive loans, and next government could get stuck with a huge bill from Venezuela.

Trending Now

Costa Rica Green Hotels Lead Global Sustainable Tourism

Costa Rica’s reputation as a leader in sustainable tourism grows stronger every year, with our green hotels setting a high bar for eco-conscious hospitality...

Costa Rica Identified as Key Maritime Route for Cocaine Trafficking

Costa Rica appears among the main maritime and aerial routes for cocaine trafficking between South and North America, according to the World Drug Report 2025 published...

Costa Rica Court Moves to Lift President Chaves’ Immunity

Costa Rica’s Supreme Court of Justice on Tuesday asked Congress — for the first time in the history of this country with a well-established...

Retired Nicaraguan Army Captain Sentenced to 50 Years for Treason

A retired military officer was sentenced to 50 years in prison in Nicaragua for the crime of "treason against the homeland," his family denounced...

Obesity in Costa Rica: A Growing Health Crisis After 35 Years of Change

Recent studies claim that about one-third of adults in Costa Rica are considered obese and another third overweight. Which means about two-thirds of adults...

Costa Rica Moves Forward with Crypto Regulation to Combat Financial Crime

Costa Rica’s Legislative Assembly has advanced a landmark bill targeting the regulation of virtual asset service providers (VASPs), aiming to bolster the nation’s defenses...
Avatar
spot_img
Costa Rica Tours
Costa Rica Coffee Maker Chorreador
Costa Rica Coffee Maker Chorreador
Costa Rica Travel Insurance
Costa Rica Rocking Chait
Costa Rica Travel

Latest News from Costa Rica