IMF Staff Country Reports

Costa Rica: Selected Issues and Analytical Notes

Publication Date:

June 27, 2017

Electronic Access:

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Summary:

This Selected Issues paper describes Costa Rica’s vulnerability to potential policy changes in the United States after the November 2016 presidential election and its effects on Central America. In the near term, the most likely US policy shift is a change in the macroeconomic policy mix, involving an expansionary fiscal policy—implemented initially through tax cuts—and a tighter than previously expected monetary policy stance. The results suggest that Costa Rica could be more affected through the foreign direct investment and trade channels, unlike the rest of Central America, where remittances and immigration play a key role.

Series:

Country Report No. 2017/157

Subject:

Banking Countercyclical capital buffers Credit Credit gaps Expenditure Financial regulation and supervision Financial sector policy and analysis Income Money National accounts Pension spending