Costa Rica and IMF reach a staff-level agreement

By IDEAS

The International Monetary Fund (IMF) reached agreement at the staff level with the Costa Rican authorities on the policy measures necessary to complete the first and second reviews under the economic reform program supported by the three-year Extended Fund Facility (EFF) arrangement.

An IMF mission led by Ms. Manuela Goretti held virtual meetings with the Costa Rican authorities during February 22-March 3, 2022.

“A proactive response to the pandemic, including a vigorous vaccination campaign, and sustained export performance have supported a robust recovery in Costa Rica. Nonetheless, the threat of new COVID variants as well as higher global commodity prices and tighter global financial conditions, pose downside risks to Costa Rica’s economic outlook", Goretti stated.

Costa Rica's fiscal position has been bolstered by revenue mobilization efforts, improved tax administration, and prudent spending under the fiscal rule.

“The pandemic has brought inequality challenges to the forefront. Ongoing efforts to support the most vulnerable, incentivize formal employment, pursue women’s economic empowerment, increase digitalization, and transition to a lower carbon economic model will be instrumental to achieving an inclusive and green economy that creates high quality jobs for all Costa Ricans", Goretti added.