Costa Rica: Robust performance, but mind the fiscal vulnerabilities

​An attractive investment destination with a positive growth outlook

Costa Rica’s GDP growth rate has been among the most dynamic in the Latin American region. The economy expanded by +4.3% in 2016 and should grow by +3.8% in 2017. The output gap is closed by now, as the economy should continue growing at +3.8% in 2018 and +3.9% in 2019. Favorable global and local financial conditions and a positive terms-of-trade shock (low oil prices) have supported activity.