Tuesday, 29 September 2020

Costa Rica Casts Its Net Wider for Investment as Deficit Widens

Q24N via Washington Post (Bloomberg) — Costa Rica is looking to the vast reserves of the United Arab Emirates’s sovereign wealth funds to boost investment in the Central American nation, President Luis Guillermo Solis said, a year after failing to convince the Chinese to buy US$1 billion of its bonds.

Costa Rica Business

The wealth funds, as well as private investors in the UAE, could buy into a series of highway and railroad projects connecting the Caribbean to Pacific coasts and in the production of high-tech medical devices, as well as tourist facilities, Solis said in a telephone interview interview.

Talks over a US$1 billion bond sale to China stalled early last year, forcing the Central American nation to cast its net for foreign investment wider as it looks to drive growth, while curbing a burgeoning budget deficit. The Abu Dhabi Investment Authority manages almost US$800 billion, according to the Sovereign Wealth Fund Institute, about 14 times as much as Costa Rica’s gross domestic product.

- paying the bills -

“The democracy in Costa Rica, the strong adherence to the rule of law in a country that is pretty secure, all of this means that we have a very adequate environment to come and develop,” Solis said in a telephone interview. “We are ready for business.”

Costa Rica and the UAE signed an accord Monday to ease visa requirements for both nations, with Costa Rica opening a trade mission in Dubai and an embassy in Abu Dhabi in the coming months to help foster trade that Solis said is growing 25 percent a year.

The Central Bank forecasts economic growth of 4.1 percent this year and next lead by banking and the service industries. Foreign direct investment is growing at a pace of 9 percent a year, Solis said. The nation received a record 2.9 million tourists in 2016.

Still, unemployment rose in the third quarter last year to 9.7 percent and the government’s budget deficit is forecast to widen to 5.9 percent of GDP this year as it struggles to get Congress to raise taxes.

Article by originally appeared on Washingtonpost.com

- paying the bills -

Q24N
Q24N
Q24N is an aggregator of news for Latin America. Reports from Mexico to the tip of Chile and Caribbean are sourced for our readers to find all their Latin America news in one place.

Related Articles

We Haven’t Hit Bottom Yet

Jobs are in short supply in Costa Rica as a result...

Price of the dollar continues to rise, already hits ¢600 at banks

The price of the dollar exchange continues to rise and the...

MOST READ

Coast Guard boat sinks with four officers on board while chasing narco boat

(QCOSTARICA) A boat of the National Coast Guard Service, in which four officers on board, sank while chasing a drug boat on Thursday morning. The...

Beers drunk at home don’t taste the same

(QCOSTARICA) It's the weekend but it doesn't feel it anymore because the pandemic took away the weekend outings for a beer - a cerveza...

COVID-19 in Costa Rica: drop in new cases daily, Health allowes use of antigen tests

(QCOSTARICA) It was good to see Health Minister, Dr. Daniel Salas, back at the helm, after being absent for more than week. The Minister reported...

Allion Bonilla case: femur of missing girl found at dump site

(QCOSTARICA) Though it has yet to be confirmed through forensic analysis, the Organismo de Investigacion Judicial (OIJ) located a femur and a piece of...

Blame the drivers: It’s not the posts, but the lack of road safety education

(QCOSTARICA) The installment of the flexible delineator folding posts on the Ruta 32, at a cost of ¢177 million colones Sunday morning is failing...

Government fears “very drastic” consequences of not agreeing with the IMF

(QCOSTARICA) The Government affirmed Tuesday night, on a national television broadcast, that the country could face "very drastic" consequences if the agreement with the...

Let's Keep This Going!

To be updated with all the latest news and information about Costa Rica and Latin America.

Log In

Forgot password?

Forgot password?

Enter your account data and we will send you a link to reset your password.

Your password reset link appears to be invalid or expired.

Log in

Privacy Policy

Add to Collection

No Collections

Here you'll find all collections you've created before.