Economy / Costa Rica
If you would like to subscribe to Central America Monitor and gain instant access to this article, please click here to subscribe.
If you would like to take a trial to Central America Monitor please click on the trial link below.
Macroeconomic Forecast Costa Rica
April 2008 | Macroeconomic ForecastsSorry, you must be a subscriber to view this article in full. If you are a subscriber please login.
If you would like to subscribe to Central America Monitor and gain instant access to this article, please click here to subscribe.
If you would like to take a trial to Central America Monitor please click on the trial link below.
Foreign reserves increased by US$1bn in 2007 to US$4.1bn, owing to high levels of foreign direct investment (FDI) and the central bank's purchases of US dollars in order to maintain the colón within a restricted band. This year, a slowdown in FDI stemming from the US economic downturn and deteriorating prospects for tourism in the near term will reduce upside pressure on the external accounts. Our US$4.3bn year-end forecast for reserves is conservative, particularly given the US$4.4bn level recorded in January, but there are signs from the forex market that inflows have already begun to slow.