The Costa Rican Presidency has withdrawn 10 law projects in an effort to streamline the path toward a $504 million loan from the International Monetary Fund.
The figure would represent the country's largest fall since Costa Rica's economic crisis of the 1980s. It's a steeper decline than previously forecast and takes into account the ongoing effects of the crisis.
As many countries prepare to resuscitate their economies, the IMF warned that a possible second wave of infections could mean a worsening of the already bleak picture.
Costa Rica's economy will experience a 3.6% contraction instead of a 2.5% expansion this year as expected before the pandemic, according to the Central Bank (BCCR).
The IMF board on Wednesday approved $504 million in emergency financing for Costa Rica to help the Central American nation deal with the economic damage inflicted by the coronavirus pandemic.
Perhaps there is a better way to use leverage to forecast recessions. Instead of looking at the amount of credit, maybe we should look at the price and the quality of credit.
South American nations are more dependent on global commodity markets than the Caribbean, Central America or Mexico, whose fortunes are more closely linked to the strengthening U.S. economy.
