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Improved Economic Outlook
The international risk
assessment agency Standard &
Poor's improved its economic
outlook for Costa Rica.
The
agency upgraded from "negative"
to "stable" the ability of the
Government of Costa Rica to
honor its external debts.
This
is the outcome of what the
agency deems an improvement in
the fiscal management during the
last year, the likelihood of
improved revenues, and a lower
public deficit, mainly.
However,
Standard & Poor's does not omit
that Costa Rica remains subject
to risks such as an elevated use
of dollar in every day
transactions and the regulation
of the banking sector.
The
Minister of Finance Federico
Carrillo and the president of
the Central Bank Francisco
Gutierrez stated satisfaction at
the news.
Carrillo pointed out
that if the fiscal reform that
the Government is promoting is
finally approved by the
Legislative Assembly, it will be
possible to continue the
capitalization of the Central
Bank, therefore lowering
inflation, a step to modify the
exchange rate, one of the
incentives for the use of the
dollar instead of the local
currency.
Gutierrez pointed out
that the news is excellent,
since it will eventually enable
the country to lower the
interest rates, acting upon the
perception of lower external
risk.
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