Costa Rican Growth To Peak In 2021, Then Slow As Domestic, External Headwinds Strengthen

• Fitch Solutions expects the Costa Rican economy will grow 3.9% in 2021 and 3.4% in 2022, marking a full recovery from the COVID-19 pandemic, which caused real GDP to contract 4.5% in 2020. 
• Private consumption will lead the economic rebound in Q421 and H122 as COVID-19 risks ebb and inflation remains subdued, though consumption and investment will decelerate from H222 onwards as the government tightens fiscal policy and borrowing costs rise. 
• Fitch notes downside risks to its growth outlook in the short-to-medium term with the main risks being a sudden slowdown in the global economy or if domestic instability in Costa Rica constrains economic activity. 

(Source: Fitch Solutions)