International Monetary Fund. Western Hemisphere Dept.
INTERNATIONAL MONETARY FUND
Costa Rica has made great strides converging towards OECD living standards, but significant vulnerabilities persist, mainly from the weak fiscal position and sizable FX lending to unhedged borrowers. Growth slowed markedly in 2018, reflecting multiple shocks buffeting the country. The new government recognizes the challenges and passed a fiscal reform bill-something in the works for nearly two decades-into law last December.