Costa Rica: 2016 Article IV Consultation-Press Release; Staff Report; and Statement by the Executive Director for Costa Rica
IMF Staff Country Reports, May 23, 2016
Source details
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- Costa Rica: 2016 Article IV Consultation-Press Release; Staff Report; and Statement by the Executive Director for Costa Rica
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Bibliographic details
- Published: May 23, 2016
- Series: IMF Staff Country Reports
- DOI: https://doi.org/10.5089/9781475519228.002
Overview and main findings
- The paper discusses key issues related to the economy of Costa Rica.
- Costa Rica "bounced back quickly from the global financial crisis."
- Growth has moderated below trend, with "a third year of growth below potential" resulting in "a moderate output gap."
- Macro vulnerabilities are rising, "mainly from the weak fiscal position."
- Policy actions have been "broadly consistent with past IMF advice."
- The central bank "took advantage of the favorable shock from lower oil prices to reduce its inflation target range."
- The exchange rate has been stable despite "abandonment of band regime," and "reserve accumulation has resumed strongly."
- The external position is "close to equilibrium," with competitiveness "largely unchanged in 2014–15."
Policy assessment and implications
- Fiscal position
- Weak fiscal position is identified as the main source of rising macro vulnerabilities.
- Policy actions to date are characterized as broadly consistent with prior IMF advice (no specific measures detailed in the summary).
- Monetary policy and inflation
- Central bank responded to lower oil prices by reducing its inflation target range.
- Exchange rate and external sector
- Exchange rate stability has been maintained after abandoning the band regime.
- Reserve accumulation has resumed strongly.
- External position assessed as close to equilibrium; competitiveness largely unchanged in 2014–15.
Content in this bundle
- Costa Rica: Selected IMF Staff Report