Major year-end challenge awaits government of Costa Rica

The first hundred days of the new government of Costa Rica have not been all sweetness and light, but the decisions taken in the months to come will really determine the future in economic, social and structural terms.

The economy looks like being the biggest challenge. The slowdown has meant a drop in income from taxes, so the Finance ministry  will have to rely on bond issues and that will boost interest rates.

The first step will be the presentation of the national budget on September 1. If it fails to curb spending, approval of the fiscal reform is sure to have a difficult passage in the Legislative Assembly.

The other big headache is the crisis in Nicaragua. Given Costa Rica's fiscal problem, the arrival of a flood of penniless Nicaraguans without any programs to support them could face a major social challenge in terms of public health and human rights.