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, mark 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. In response it has sought financial assistance from multilateral organisations, including from the IMF, though the latter effort remains suspended owing to the absence of a cross-party consensus and social unrest. The collapse in tourism inflows will pose longer term problems given the sector's contribution to economic growth and employment.