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Costa Rican deficit heads in the right direction

Tuesday, January 22, 2019


Even without the resources expected as a result of the fiscal reform, Costa Rica's deficit last year was $690 million less than expected.
The total came to 6 percent of GDP, while the forecasts were of 7 percent or more.

Maintenance of the downward trend will depend on various factors on which the Finance ministry is betting. These include ensuring zero growth in the 2020 budget and a $6 billion Eurobond issue.

Other measures, such as new tax income from the fiscal reform that is due to emerge in the second half of the year, and a new law on the public service, are other measures that could reduce the deficit even more.