Costa Rica Unlocks $519 Million From IMF For Economic Reform, Climate Programmes

• Costa Rica has unlocked a total of around $519Mn for its economic reform programme and a climate and sustainability programme, the International Monetary Fund (IMF) said.
• Around $274Mn went to the economic reform programme, which is one instalment in the more than $1Bn Costa Rica has received from the IMF under the arrangement, the fund said. Another $245Mn goes to the resilience and sustainability arrangement.
• The Central American country met its fiscal targets by large margins, further strengthening debt sustainability, Kenji Okamura, acting chair of the IMF board, said in a statement.
• Additionally, proposed tax reforms, including recently submitted legislation, will make the system more progressive, equitable, efficient, and environmentally friendly. The steady improvement in public debt management is also welcomed.
• "While there is scope for further monetary easing in 2023, policies should remain attentive to risks to the inflation outlook," he added.
• The IMF pegged Costa Rica's real gross domestic product (GDP) growth for this year at 3.0% and 3.2% in 2024.

(Sources: IMF & Reuters)