IMF Staff Country Reports

This paper discusses Costa Rica’s Fourth Review under the Extended Arrangement under the Extended Fund Facility (EFF), First Review under the Resilience and Sustainability Arrangement, Request for Modification of Reform Measure under the Resilience and Sustainability Facility (RSF), and Monetary Policy Consultation. Program performance under both the EFF and the RSF remains strong. All performance criteria and indicative targets have been met for the fourth review of the EFF. Inflation exceeded the outer band of the Monetary Policy Consultation Clause in December 2022, triggering a Board consultation, but has been on a strong downward trend, returning to the central bank’s tolerance band in April. Implementation of most structural reforms is on track. Progress on implementing the Public Employment Bill has been slower than anticipated but the single wage spine has been put in place for one quarter of executive branch positions, meeting the prior action for this review.