OECD believes that the fiscal problem is the main risk of Costa Rica – Costa Rica The Nation

 Updated June 1, 2016 at 06:28 pm
 

the country’s GDP would grow by 4% in 2016

San José

analysts of the Organisation for Economic Co-operation and Development (OECD) believe that the main risk to Costa Rica is the fiscal problem.

This was stated by Christian Daude, senior economist of the organization, who said in a press conference from Paris, France, that the solution to the fiscal deficit of Costa Rica should be a priority, but currently there is little progress in this discussion.

Daude added that although they expect progress in the coming months, the Legislature is engaged in discussing what what reforms should approve.

the presentation took place in the middle of the ministerial meeting of the OECD and the presentation of global economic projections, which included a section for Latin American countries.

these enrolling Costa Rica, which is in the process of joining the body and for which projected a growth in its Gross Domestic Product (GDP) of 4% for 2016 and 4 , 1% for 2017.

Daude and other economists explained that from 2014 to date, the country was benefited from the decline in international commodity, like oil, which will allowed to increase domestic consumption and imports.

This did not happen with other national Latin American, that although their currencies were devalued, failed to improve its production indicators. Even Latin American countries surveyed by the OECD, Costa Rica is the only one in the projection reported growth in GDP for 2016 compared with Brazil, Chile, Colombia and Mexico.

“domestic demand was driven by improved terms of trade, falling prices of imported raw materials and increased investment, which more than offset the withdrawal of a large electronics company and adverse weather related El Niño, “says the report of the organization.

for economist José Luis Arce, the appreciation has OECD Costa Rica is correct, because they are already nearly eight years that the country fails a solution to the tax issue. Arce also said that the opportunity to reform a beneficial environment with low prices and interest rates slip

.

According to the specialist , domestic demand for goods and services was revived precisely because the benefit obtained in terms of trade, but also because there was a credit expansion and therefore the “perfect environment” created for families to spend more.

“improving productivity requires a comprehensive strategy to strengthen institutions, improve competition, promote innovation and access to finance, and improving transport infrastructure. improving the quality of education and the employment prospects of women would reduce inequality by expanding opportunities and share prosperity more widely “says the section on Costa Rica, which since 2012 announced its interest in becoming a state over this group.

the OECD also issued a warning about what could lead to a devaluation of the colon and slow progress in emerging economies. Problems in these fields could alter the stability of the banking system due to the high dollarization of credit.