Press Release No. 22/207

IMF Staff Concludes Visit to Costa Rica

June 17, 2022

• An IMF team visited San José to meet the new government of Costa Rica and discuss their policy priorities in preparation for the third review mission under the Extended Fund Facility (EFF) later in the year.
• The authorities are committed to ensuring debt sustainability, while safeguarding monetary and financial stability and protecting the most vulnerable, amid rising external pressures and a weakening outlook.
• The IMF staff will continue to work with the authorities to support Costa Rica’s ambitious efforts to strengthen policies to boost productivity and foster green and inclusive growth.

San José, Costa Rica: An International Monetary Fund (IMF) team led by Manuela Goretti visited San José, Costa Rica, on June 14-16, 2022, to meet with the new government and discuss their policy priorities under the economic reform program supported by the Extended Fund Facility (EFF). At the conclusion of the visit, Ms. Goretti issued the following statement:

“The team discussed with the authorities recent economic developments and the outlook for Costa Rica, amid heightened external pressures and the ongoing pandemic. Higher global commodity prices are weighing on the current account and international reserves through a rising oil import bill, in the context of sustained capital outflows from local pension funds. External pressures are also feeding through to inflation, which is increasing rapidly beyond the Central Bank of Costa Rica´s (BCCR) tolerance band. After a strong rebound in 2021, with real GDP growth reaching 7.8 percent, high frequency indicators point to a softening in economic activity in 2022.

“In the face of these new challenges, the team discussed with the authorities their policy priorities in preparation for the third review mission under the EFF later in the year. The authorities renewed their firm commitment to ensuring debt sustainability, while safeguarding monetary and financial stability and protecting the most vulnerable amid rising global and domestic pressures.

“They emphasized their ongoing efforts to strengthen policies to boost productivity and foster green and inclusive growth. In this context, they expressed interest in the IMF’s new Resilience and Sustainability Facility to advance Costa Rica’s pioneering efforts to adapt to climate change and transition to a low-carbon economy, while generating new jobs and growth opportunities.

“The IMF team would like to thank the authorities for their kind hospitality and fruitful discussions and stands ready to continue to support the government of Costa Rica in the implementation of its ambitious economic reform program.”