Fiscal Measures Don't Go Far Enough

Plans to address the highly inefficient tax system in Costa Rica should help to alleviate weak government revenues, though we need to see more signs of the new administration's willingness to implement spending cuts before altering our fiscal outlook. For the time being we continue to project a fiscal deficit of 4.7% of GDP in 2010, and only see this narrowing slightly in 2011 to 4.6% of GDP.

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