Covid-19 Tourism Shutdown To Weigh On Costa Rican Growth

• Economic growth in Costa Rica will slow in the near term as the global Covid-19 (coronavirus) outbreak strains the country’s tourism industry, weighs on investment and drives unemployment levels higher.
• Limited fiscal space will constrain the government's response to the pandemic, causing monetary policy to serve as the primary response tool to combat the economic impact of coronavirus.
• Fitch revised its 2020 real GDP growth forecast to 1.1% y-o-y, from 2.6% previously, and note downside risks to its outlook if the Costa Rican government ramps up domestic mobility and travel restrictions to combat the spread of the coronavirus.

  (Source: Fitch)