American Expatriate Costa Rica

Brexit’s possible impact on Costa Rica

On June, 23th, the UK will decide whether or not to leave the European Union. This process is known as Brexit (British Exit).

Although it may seem somewhat distant, this decision may have direct consequences on Costa Rica. According to the economist Thelmo Vargas,

if the UK left the EU, dynamism will be lost and this affects Costa Rica because the EU is an important trading partner.”

In addition, pessimism will increase interest rates and this will affect loans tied to the Libor rate, which is determined in London.

Melvin Garita, another economist, fears this the flow of tourists from Europe might fall, as well as international cooperation. This, however, might be positive for Costa Rica, since it could know meet the demand for services in the UK, so far provided by the EU.

Nevertheless, Guillermo Barquero, a political scientist and international relations specialist, doesn’t think that Brexit will have political consequences on Costa Rica.

crhoy.com