QCOSTARICA — Is Costa Rica deviating from its fiscal goal? In a report released midweek, the Fitch Ratings agency warned that Costa Rica and other Latin American countries are close to deviating from their respective fiscal goals for 2025.
In the case of Costa Rica, Fitch stated that Costa Rica requested legislative authorization to adjust its fiscal goals.
“Most countries with formal fiscal goals are not on track to meet them this year. Brazil, Chile and Colombia are applying spending cuts to reduce projected deviations from fiscal goals, but these may not be sufficient to achieve them. Uruguay expects that it will not achieve its goal. Peru has already relaxed its goal, Costa Rica has requested legislative authorization to do so, and it is likely that Panama will do the same,” the rating agency said.
– Advertisement –
The information was first released by La Nación, in the article “Fitch menciona a Costa Rica entre países de América Latina ‘desviados’ de la meta fiscal”.
In this sense, fiscal positions in Latin America began to deteriorate in 2023, after “surprisingly solid” recoveries after Covid-19.
As for Costa Rica, the sovereign risk rating was improved by Fitch last February, based on the positive results in public finances attributed to the adoption of the fiscal rule, as well as economic growth and increased liquidity, going from BB- to BB.
And the fact is that the Chaves government has presented a project to reduce the fiscal goals established in November 2022, which were set by the Legislative Assembly as a condition for the Ministry of Finance to be able to carry out the placement of Eurobonds.
– Advertisement –
Source link
Rico
