LatinNews Daily - 16 June 2021

In brief: Costa Rica claims fiscal deficit progress

* Costa Rica’s finance ministry has released new figures which show the country’s fiscal deficit to May was ¢609.342bn (US$984.4m), representing 1.61% of GDP – the lowest of the last four years as a percentage of GDP. This compares with ¢1.05trn, registered at the same point the previous year, which was equivalent to 2.91% of GDP. As of May this year, public debt was ¢25.80trn (68.15% of GDP). Last year, following the impact of the coronavirus (Covid-19) pandemic, Costa Rica posted a fiscal deficit of 8.1% of GDP, and a public debt of 67.5% of GDP. Finance Minister Elian Villegas attributes the improvement of the fiscal deficit to a recovery of the tax take and the application of measures to contain government spending but stresses that “despite the positive performance, we cannot lower our guard”.