American Expatriate Costa Rica

The 4 economic risks that Costa Rica could face

The Macroeconomic Review Program 2016-2017 presented by the Central Bank indicated that the country could face 4 economic risks in the near future.

The main threats are:

Excessive liquidity in the financial system: which means that those funds could be spent, causing an effect on the prices and therefore on the inflation.

Credits (in USD currency) granted to economic agents whose main source of income is in colones: Luis Mesalles, an economist at the Central American Academy, said, after reviewing the macroeconomic program, that everything indicates that the Central Bank will use the international reserves to level the exchange rate if necessary.

Increase on the public debt versus Gross Domestic Product (GDP).:

That’s going to put pressure on the local rates, because there would be less capital available,

stated Mesalles.

Global growth is inferior than the expected by Costa Rica’s main trading partners: This is related to Costa Rica integration into international markets.

crhoy.com