Costa Rica: 2023 Article IV Consultation, Fifth Review Under the Extended Arrangement Under the Extended Fund Facility, Second Review Under the Resilience and Sustainability Facility, and Request for Modification of Reform Measure
IMF Staff Country Reports, December 22, 2023
Source details
- Canonical URL
- Costa Rica: 2023 Article IV Consultation, Fifth Review Under the Extended Arrangement Under the Extended Fund Facility, Second Review Under the Resilience and Sustainability Facility, and Request for Modification of Reform Measure
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Bibliographic details
- Published: December 22, 2023
- Series: IMF Staff Country Reports
- DOI: https://doi.org/10.5089/9798400261930.002
Summary and context
- Paper covers Costa Rica’s 2023 Article IV Consultation, Fifth Review under the Extended Arrangement under the Extended Fund Facility (EFF), Second Review under the Resilience and Sustainability Facility (RSF), and Request for Modification of Reform Measure.
- Costa Rica is reaping the benefits from the home-grown reform program.
- Date of publication: December 22, 2023.
Fiscal framework, public debt, and liquidity
- It is critical to continue adhering to the existing fiscal framework.
- The June Indicative Target on public debt was exceeded as the government took advantage of favorable market conditions to build liquidity buffers.
- Performance under the EFF and the RSF arrangements remains strong; all quantitative performance criteria have been met for this review.
Central bank governance, autonomy, and monetary policy
- Authorities should continue pursuing improvements to the central bank’s governance and autonomy.
- While the central bank is conducting monetary policy in an independent manner, these practices should be institutionalized through legislation.
- It is critical that the central bank’s autonomy and other areas of improvements recommended in the 2020 Safeguards Assessment that remain unaddressed be followed up in a steadfast manner.
Other institutional and policy priorities
- Restrain foreign exchange intervention.
- Ensure compliance with the Public Employment Law.
- Restart central bank autonomy and governance reform efforts.
Subjects and keywords (as listed)
- Subjects: Climate change, Economic and financial statistics, Environment, External sector statistics, Government finance statistics, Inflation, International organization, Monetary policy, Prices.
- Keywords: Caribbean, Central America, Climate change, climate change resilience recovery, decarbonization effort, External sector statistics, FX operations, Global, Government finance statistics, headline inflation, IMF Resilience and Sustainability Facility arrangement, Inflation, RSF arrangement.
Content in this bundle
- 1criea2023005