IMF Office in Costa Rica

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Office Activities

Who we are

The Resident Representative Office in Costa Rica was opened in July 2021 by Julia Bersch as the inaugural Resident Representative. Mr. Santiago Acosta Ormaechea became the second Resident Representative in December 2022. The Office is composed by the Resident Representative along with three local employees, a local economist, office manager and driver.

What we do

The IMF Resident Representative office in Costa Rica functions as a liaison between the IMF headquarters and the Government of Costa Rica with a primary focus to support the Fund’s Extended Arrangement under the Extended Fund Facility (EFF) and Request for an Arrangement Under the Resilience and Sustainability Facility (RSF) for Costa Rica. In that capacity, the office follows economic developments and policies in Costa Rica, liaises between the Costa Rican authorities, think tanks, civil society and labor unions and IMF staff in Washington, and coordinates IMF technical assistance. It is also a source of information about IMF views for the public, local and foreign analysts, investors, academic and research institutions, and Costa Rica’s international partners and their diplomatic missions.

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IMF's Work on Costa Rica

• Costa Rica: Fourth Review Under the Extended Arrangement Under the Extended Fund Facility, First Review Under the Resilience and Sustainability Arrangement, Request for Modification of Reform Measure Under the Resilience and Sustainability Facility, and Monetary Policy Consultation-Press Release; and Staff Report

  June 27, 2023

  Series:Country Report No. 2023/231
  

• IMF Executive Board Concludes the Fourth Review of Costa Rica’s Extended Fund Facility and the First Review under the Resilience and Sustainability Facility

  June 26, 2023

  The authorities continue to make important progress on Costa Rica’s economic reform agenda. Going forward, the overall policy stance should remain focused on durably bringing inflation back to target and keeping public debt on a firm downward path, while advancing reforms to achieve green, dynamic and inclusive growth.

• Costa Rica: Technical Assistance Report-Sovereign Asset and Liability Management—Scoping Mission

  June 15, 2023

  Series:Country Report No. 2023/213
  

• Costa Rica: Sovereign Asset and Liability Management – Scoping Mission

  June 15, 2023

  Author/Editor:David A. Grigorian | Phillip Anderson | Antonio Juambeltz
  Series:High Level Summary Technical Assistance Report No. 2023/007
  

• IMF Reaches Staff-Level Agreement with Costa Rica on the Fourth Review of the Extended Fund Facility and the First Assessment of the Resilience and Sustainability Facility Arrangement

  April 28, 2023

  “The Costa Rican authorities and IMF staff have reached a staff-level agreement on the completion of the fourth review under the EFF and the first review under the RSF. The agreement is subject to approval by the IMF Executive Board, contingent on the implementation of a prior action by the authorities linked to implementing the public employment law.

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Regional Economic Outlook

Western Hemisphere

Regional Economic Outlook

Recent developments in the Western Hemisphere—that is, the United States/Canada and Latin America and the Caribbean (LAC)—have been dominated by the impact of two distinct global shocks: the COVID-19 pandemic and then the Russian invasion of Ukraine. A third shock—the tightening of financial conditions—is now shaping the outlook. After contracting sharply in 2020, most of the Western Hemisphere’ economies recovered strongly in 2021 and early 2022, helped by the global recovery, the normalization of service sectors, and booming commodity prices. However, inflation pressures built up with pandemic-related disruptions, expansionary policies, rebounding demand, and the impact of the war in Ukraine on energy and food prices. The swift response of LAC’s monetary authorities to rising inflation—well ahead of other economies—helped contain price pressures and keep long-term inflation expectations anchored, but inflation remains high. Amid global monetary and financial tightening, and the ensuing slowdown in global growth and softening of commodity prices, activity is expected to decelerate throughout the Western Hemisphere in late 2022 and 2023, while inflation pressures are expected to recede gradually. Downside risks dominate the outlook and stem from tighter financial conditions, a more pronounced global slowdown, and entrenched inflation. For LAC, a sharp fall in commodity prices and social unrest are important risks. With inflation yet to abate and most economies still operating at or near potential, monetary policy should avoid easing prematurely and must stay the course. Clear communication of policy intentions will be key to reducing uncertainty and keeping inflation expectations anchored. Fiscal support deployed to mitigate the impact of inflation on the most vulnerable should be accompanied by compensating measures, where fiscal space does not exist, but also support monetary authorities’ efforts to tame inflation. Given rising financing costs, strengthening fiscal frameworks and advancing with inclusive fiscal consolidation—that protects key social objectives—will be essential to credibly putting public debt on a firm downward path while ensuring social stability. Boosting LAC’s medium-term growth requires raising productivity and good-quality public and private investment. Supply-side policies should focus on strengthening human capital, simplifying and modernizing labor regulations, and lifting barriers to firm entry and exit.

Read more: Regional Economic Outlook for the Western Hemisphere, October 2022