## 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

**Canonical URL:** [Costa Rica: 2016 Article IV Consultation-Press Release; Staff Report; and Statement by the Executive Director for Costa Rica](https://www.imf.org/en/publications/cr/issues/2016/12/31/costa-rica-2016-article-iv-consultation-press-release-staff-report-and-statement-by-the-43916)

## Other formats

- [Markdown version](/en/publications/cr/issues/2016/12/31/costa-rica-2016-article-iv-consultation-press-release-staff-report-and-statement-by-the-43916/index.md)
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## Bibliographic details
- Published: May 23, 2016
- Series: IMF Staff Country Reports
- DOI: https://doi.org/10.5089/9781475519228.002

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### 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.

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## Content in this bundle

- **Costa Rica: Selected IMF Staff Report**
  - [Costa Rica: Selected IMF Staff Report (Markdown version)](/-/media/websites/imf/imported-full-text-pdf/external/pubs/ft/scr/2016/_cr16131.pdf.md){rel="alternate" type="text/markdown"}
  - [Costa Rica: Selected IMF Staff Report (PDF)](/-/media/websites/imf/imported-full-text-pdf/external/pubs/ft/scr/2016/_cr16131.pdf){rel="external" type="application/pdf"}

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_Source: https://www.imf.org/en/publications/cr/issues/2016/12/31/costa-rica-2016-article-iv-consultation-press-release-staff-report-and-statement-by-the-43916_