Costa Rica Economy
Economy—overview:
Costa Rica's basically stable economy depends on tourism, agriculture, and electronics exports.
Poverty has been substantially reduced over the past 15 years and a strong social safety net has been put into place. Economic growth has rebounded from -0.9% in 1996 to 3% in 1997 and an estimated 5.5% in 1998. Inflation rose to 22.5% in 1995, dropped to 11.1% in 1997, and reached an estimated 12% in 1998. Unemployment appears moderate at 5.6%, but substantial underemployment continues.
Furthermore, large government deficits—fueled by interest payments on the massive internal debt—have undermined efforts to maintain the quality of social services.
Curbing inflation, reducing the deficit, and improving public sector efficiency remain key challenges to the government. President Pacheco has called for an increased economic role for the private sector, but political resistance to privatization has stalled much of his economic program.
posted by Christian Gomez at 6:47 PM
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