Wednesday 3 March 2021

Costa Rica is among the most indebted in Latin America

Report of the Economic Commission for Latin America and the Caribbean shows that after Argentina and Brazil, Costa Rica is the nation with the highest public indebtedness as a percentage of GDP, as of September 2020

QCOSTARICA – The Government of Costa Rica stands out in Latin America for being one of the countries with the highest indebtedness as of September 2020, and is also among those that have increased debt the most this year.

Costa Rica was already facing fiscal problems before the pandemic and with the restrictive measures to face it, including the closure of businesses, the situation worsened. Photo Jeffrey Zamora

This is clear from the study Balance Preliminar de las Economías de América Latina y el Caribe 2020 (Preliminary Balance of the Economies of Latin America and the Caribbean 2020), one of the main annual reports of the Economic Commission for Latin America and the Caribbean (ECLAC), published on December 16.

- Advertisement -

According to the regional study, Argentina is the nation with the highest level of public debt as of September (95.4% of GDP – gross domestic product), followed by Brazil (90.6% of GDP), Costa Rica (66.22% of GDP), and Colombia (61% of GDP).

Those with the lowest levels of public debt are Peru (28% of GDP) and Paraguay (27.6% of GDP).

Costa Rica also stands out for being the nation with the highest increase in interest payments by the Central Government, between 2019 and 2020.

“In 10 out of 12 Latin American countries there is an increase in interest payments between 2019 and 2020; in Costa Rica, the maximum increase reached is 0.7 points of GDP ”, comments the report.

- Advertisement -

This increase in interest payments is consistent with also being the third government with the largest financial deficit as of September of this year (6.7%), after El Salvador (8.1%) and Brazil (12.3%).

The gross public debt of central governments in Latin America

The report explains that the economic crisis derived from the pandemic has greatly affected public revenues in the region. The paralysis of economic activity and the sharp drop in private consumption has had an impact on tax collection.

In addition, tax collection has also been affected by the tax relief measures that countries have applied to support families and businesses.

In Latin America, the total revenues of central governments with respect to production went from representing 13.6% in 2019 to 13.1% in September 2020.

“Despite this difficult context, in the second half of the year the contraction of tax revenues began to ease in the region,” the report states.

- Advertisement -

For its part, public spending has been one of the key tools to respond to the crisis. Forceful fiscal efforts have been seen throughout the region, through packages of measures that have sought to strengthen public health systems and channel resources through subsidies and transfers to families and businesses.

“The growth of primary spending —which excludes interest payments— has been significant, with real interannual variation rates above 10% in several countries (and exceeding 20% ​​in some cases) in the period between January and September 2020 compared to the same period of the previous year,” the report indicates.

In the case of Costa Rica, said primary expenditure as of September, despite higher expenditures to attend the pandemic, decreased 0.6%.

 

- Advertisement -

FACT CHECK:
We strive for accuracy in its reports. But if you see something that doesn’t look right, send us an email. The Q reviews and updates its content regularly to ensure it’s accuracy.

Ricohttp://www.theqmedia.com
"Rico" is the crazy mind behind the Q media websites, a series of online magazines where everything is Q! In these times of new normal, stay at home. Stay safe. Stay healthy.

Related Articles

Tamarindo and Sámara received recognition for Tsunami preparedness

QCOSTARICA - For their preparedness to face tsunamis, the communities of...

Costa Rica Celebrates 200th This Year

QCOSTARICA - This year Costa Rica celebrates 200 years of independent...

MOST READ

Contagion rate rises 13.3% in one week

QCOSTARICA - Though the number of new cases daily of covid-19 has been "stable" this past week, the contagion or R rate rose to...

Japan creates Ministry of Loneliness

Japan is beefing up measures against loneliness, taking a first major step toward comprehensively tackling a pervasive problem in the nation that has again...

The Quijongo!

QCOSTARICA - The quijongo is now in very good health thanks to the care of the people of Guanacaste, who are dedicated to protecting...

Driver who severely beat anoter driver on the Autopista fired and being sued

QCOSTARICA - The images filled the morning news television screen, for no apparent reason, the driver of a big rig begins to beat with...

ESPH charges the family for electricity for January and February even though fire destroyed their home in December

QCOSTARICA - Despite losing their home entirely in December, a Heredia received electricity bills from the Heredia Public Service Company (ESPH) for January and...

97 labs test those who need to leave the country for covid-19 antigens

QCOSTARICA - Need to leave the country and require a test to detect SARS-CoV-2, the coronavirus that causes covid-19? The Cámara Costarricense de la Salud...

Discovery Channel began filming the second season of “Reversed” in Costa Rica

The filming of the second season of the reality show “ReverseD” on the Discovery Channel officially began last Sunday, February 21, in Atenas, in...

When Should you Stop Playing Blackjack

The blackjack game is associated with excitement and joy. The players experience great enthusiasm while playing the game because of its great rewards for...

In a week, Costa Rica off and on the list of risk countries in Spain for covid-19

QCOSTARICA - Spain had excluded Costa Rica from the list of risk countries to enter by air for presenting a negative covid-19 test (RT-PCR,...

WANT TO STAY UP TO DATE WITH THE LATEST!

Get our daily newsletter with the latest posts directly in your mailbox. Click on the subscribe and fill out the form. It's that simple!

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.