Weekly Report - 25 July 2019 (WR-19-29)

COSTA RICA | Decreasing fiscal deficit. Costa Rica’s central bank (BCCR) released new figures on 11 July which showed the country’s fiscal deficit reached 2.99% of GDP in June, up from 2.68% registered in the first half of 2018. The country’s fiscal deficit closed at 6% in 2018 and the government led by President Carlos Alvarado is hoping to reduce it further through the new tax reform which took effect on 1 July, which includes replacing the old sales tax with a value added tax (VAT). The Alvarado administration is in the process of holding a dialogue table with a multi-sectoral group that staged protests against the new VAT at the turn of the month [WR-19-26].