Costa Rica's position in the global economy

摘要

Costa Rica's educated labour force, social, political and institutional stability, and strong technical capacity in software and other high-tech sectors represent comparative advantages that its neighbours will lack for the foreseeable future. This is reflected in the more technology-intensive activities the country increasingly attracts, compared with the low-wage manufacturing plants (maquilas) that have spread in regional economies. Fiscal constraints exacerbated by legislative deadlock have in the past limited necessary public investments, such as in the country's largely inadequate infrastructure. Costa Rica's fiscal and tax reforms, passed in 2018, marked a positive step towards increasing revenue while restraining spending. However, the government's deep fiscal imbalances have been aggravated by the onset of the coronavirus (Covid-19) pandemic in 2020 and associated economic recession. Sustained external demand for exports and a partial rebound in tourist arrivals will drive the country's economic recovery. Poor fiscal dynamics and mounting public debt will remain the major risks to the economy; failure to comply with the conditions of the March 2021 IMF agreement (not EIU's baseline assumption) would curtail the government's ability to obtain financing in 2022.