## Costa Rica: Selected Issues and Analytical Notes

_IMF Staff Country Reports, June 27, 2017_

## Source details

**Canonical URL:** [Costa Rica: Selected Issues and Analytical Notes](https://www.imf.org/en/publications/cr/issues/2017/06/27/costa-rica-selected-issues-and-analytical-notes-44992)

## Other formats

- [Markdown version](/en/publications/cr/issues/2017/06/27/costa-rica-selected-issues-and-analytical-notes-44992/index.md)
- [Structured JSON version](/en/publications/cr/issues/2017/06/27/costa-rica-selected-issues-and-analytical-notes-44992/index.json)
- [Bundle manifest](/en/publications/cr/issues/2017/06/27/costa-rica-selected-issues-and-analytical-notes-44992/bundle-manifest.json)

## Bibliographic details
- Published: June 27, 2017
- Series: IMF Staff Country Reports
- DOI: https://doi.org/10.5089/9781484304563.002

---

### 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.

### Near-term US policy shift (scenario and channels)
- Scenario: A change in the US macroeconomic policy mix consisting of:
  - expansionary fiscal policy, implemented initially through tax cuts
  - a tighter than previously expected monetary policy stance
- Implications for Costa Rica:
  - Greater exposure via the foreign direct investment (FDI) channel
  - Greater exposure via trade channels
- Contrast with the rest of Central America:
  - Other Central American countries are more affected through remittances and immigration channels

### Key thematic coverage (subjects and keywords)
- Subject areas listed:
  - Banking
  - Countercyclical capital buffers
  - Credit
  - Credit gaps
  - Expenditure
  - Financial regulation and supervision
  - Financial sector policy and analysis
  - Income
  - Money
  - National accounts
  - Pension spending
- Keywords provided:
  - accession process
  - agriculture productivity
  - bank
  - Central America
  - Countercyclical capital buffers
  - CR
  - Credit
  - Credit gaps
  - electricity generation
  - FDI channel
  - FDI scenario
  - Global
  - Income
  - ISCR
  - LPI score
  - NAFTA agreement
  - Pension spending
  - power generation capacity
  - road infrastructure

---

## Content in this bundle

- **Country Report**
  - [Country Report (Markdown version)](/-/media/files/publications/cr/2017/cr17157.pdf.md){rel="alternate" type="text/markdown"}
  - [Country Report (PDF)](/-/media/files/publications/cr/2017/cr17157.pdf){rel="external" type="application/pdf"}

---

_Source: https://www.imf.org/en/publications/cr/issues/2017/06/27/costa-rica-selected-issues-and-analytical-notes-44992_