Revising Up Growth Projections

Costa Rican President Laura Chinchilla remains one of the most popular leaders in the Central American region, according to a recent CID-Gallup poll, with a 64% approval rating. This solid reading, just two percentage points (pp) off Panama's President Ricardo Martinelli and some 12pp behind Salvadorian President Mauricio Funes, reinforces our view that a continuation of her predecessors' policy trajectory is good news for the country's political risk profile. However, we would expect her approval rating to suffer slightly if the fiscal reforms entail a significant boost in VAT, which we believe could be the case.

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