Costa Rican economy will slow down at the end of 2018 reaching a growth of 2.6% , according to a report by a mission of the International Monetary Fund (IMF) that visited the country and attributed this shock to the effects of the crisis in Nicaragua as well as the union strike, among other factors.
The slowdown reflects multiple shocks that affected the Costa Rican economy, including the three-month strike by state workers against fiscal adjustment efforts, the effects of the Nicaraguan crisis, among other factors,”
said the experts.
According to IMF data, Costa Rica grew 3.3% in 2017 and the entity forecast a similar expansion in 2018 in a report issued in October.
Moderated economic growth in the second half of the year, with an increase in the monthly economic activity index (IMAE) of only 2.7% in the third quarter of 2018, compared to 3.9% in the second quarter of the year,”
said the entity after the mission.
The IMF noted that in November consumer confidence also fell to its lowest level since records began in 2002.
The mission welcomes the recent approval of the tax reform law, which is a critical step towards restoring confidence and, if fully implemented, fiscal sustainability,”
added the IMF experts.