Costa Rica vulnerable to external risks, says IMF

Risks to Costa Rica’s economic outlook are rising, underscoring the increasing urgency of addressing mounting macro vulnerabilities, the International Money Fund said in the report of its recent consultation.

The economy is growing at trend, inflation is returning to target, and the external current account deficit has narrowed, the Fund says. However, weakening domestic fundamentals stemming from large fiscal deficits make the country particularly vulnerable to the projected tightening in global financial conditions and other external risks, it adds.

Source: International Monetary Fund