IMF projects economic slowdown in Costa Rica in 2018

The economy of Costa Rica will slow in 2018 and reach a growth of 2.6% on the year, concluded a report from a team of International Monetary Fund (IMF) experts who visited the country.

“The slowdown reflects multiple shocks that affected the Costa Rican economy, including a three-month strike by state workers against fiscal adjustment efforts and the effects of the Nicaraguan crisis,” among other factors, the IMF representatives said.

According to IMF data, Costa Rica’s economy grew 3.3% in 2017, and the organization forecast an expansion of the same level in 2018 in its October report.

“Economic growth slowed in the second half of the year, with an increase in the monthly index of economic activity of only 2.7% in the third quarter of 2018, compared to 3.9% in the second quarter of the year,” the IMF said.

The IMF noted that in November consumer confidence also fell to its lowest level since it began keeping records in 2002.

“The team welcomes the recent approval of the tax reform law, which is a critical step toward restoring confidence and, if fully implemented, fiscal sustainability,” the IMF experts added.