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Costa Rica has the biggest deficit

Tuesday, March 6, 2012

Costa Rican sovereign debt will keep its BB rating, the highest in the region, said credit agencies Fitch, and Standard & Poor, but expressed concern over the country’s fiscal deficit.

A plan to increases taxes is being debated in the Legislature, but there is no certainty that it will be approved.

Deficits are a concern in several Central American countries, although the problem is less severe in Guatemala, Panama and especially Nicaragua.

The situation has important implications for liquidity, growth and interest rates in each country, according to the International Monetary Fund.

"The 2008 crisis depleted reserves, and there are countries that have begun to rebuild fiscal reforms with increased income and better expenditure control," stressed Fernando Delgado, regional representative of the IMF.

The figures are the percentage, which the deficit represents of the GDP of each Central American country, according to information from their respective Central Banks and Finance Ministries.

  1. Costa Rica (4,1)
  2. El Salvador (4,0)
  3. Honduras (3,9)
  4. Guatemala (2,9)
  5. Panama (2,3)
  6. Nicaragua (1,5)