Strong Economic
Adjustment Coming
The head of
the Banco Central de
Costa Rica (BCCR) -
Central Bank - Francisco
Gutierrez warned that
the nation will have to
make a strong economic
adjustment in the face
of the tough
international situation.
The soaring prices of
oil and food in the
international market,
the reduced availability
of external funds, and
slower growth in the
United States – the
leading buyer of Costa
Rican exports – force
the nation to make
adjustments in order to
maintain economic
stability, Gutierrez
pointed out.
He added that the
adjustment will be in
all areas, including,
but not limited to, a
reduction of the
domestic demand – the
local purchases made by
household, companies and
the government –, a more
restrictive monetary
policy, and higher
interest rates.
According to the
official, the process is
already underway and
started in April, when
the Bank sold dollars in
order to collect colones.
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