Costa Rica has fastest growing public debt in Central America

September 19^th, 2013 (InsideCostaRica.com) Costa Rica has the fastest growing public debt in Central America, while El Salvador has the largest public debt relative to its GDP and Nicaragua and Panama are the only countries with a “sustainable” public debt, according to a report issued yesterday.

The study, prepared by the Central American Institute for Fiscal Studies, reveals that between just 2011 and 2012, Costa Rica’s public debt rose from 30.7% of its GDP to 35.3%.

Public debt in other Central American countries continues to increase, but at a slower rate than Costa Rica’s.

El Salvador has the highest debt in relation to GDP at 45.6%, followed by Panama (38.6%), Costa Rica (35.3%), Honduras (34.4%), Nicaragua (30.6%) and Guatemala (24.4%).

The study also revealed that in Costa Rica, only 1.5% of debt spending goes towards capital expenditures, while the rest goes to pay for the regular costs of the State.