IMF Staff Country Reports

Costa Rica: Selected Issues

Publication Date:

March 22, 2013

Electronic Access:

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Summary:

This article is a synopsis on Costa Rica’s international spillovers, potential estimates, fiscal challenges, and banking systems. Spillovers are originated by cross-country trade and financial linkages, and also by the impact of global fiscal consolidation. The banking sector has about one-third foreign bank assets, and these foreign investments are controlled by the United States. So a shock in the United States or China will have adverse effects on Costa Rica. To have a medium- and long-term sustainability, Costa Rica needs to have some fiscal adjustments.

Series:

Country Report No. 2013/080

Subject:

Basel III Financial institutions Financial regulation and supervision Fiscal consolidation Fiscal policy Foreign banks Output gap Production Public debt