LatinNews Daily - 31 July 2026

*Costa Rica’s central bank (BCCR) has presented its monthly monetary policy report (IPM) in which it forecasts GDP growth of 3.4% for 2026 and 3.5% for 2027. This represents a drop of 0.1 percentage points in both cases from a previous forecast made in April. According to BCCR this stems in part from the “external scenario”, characterised by “the persistence of uncertainty associated with geopolitical tensions, US trade policies and geo-economic fragmentation” while “international terms of trade will have a negative impact on national disposable income” this year. Costa Rica’s GDP grew 4.6% in 2025. As regards inflation, which was running at -0.32% in annual terms in June, far below BCCR’s target for 2026 of 3% +/-1, headline inflation is estimated to average above 2.0% from the third quarter of 2026 to the second quarter of 2028, according to BCCR. An April 2026 update by the World Bank highlights that “Costa Rica has experienced deflation in recent years, driven by falling fuel prices and the appreciation of the colón”. It expects inflation to rebound to an average of 1.0% in 2026, although notes that “a more persistent increase in international oil prices could influence price dynamics”.