Costa Rica's fiscal figures show sustained deterioration: Central Bank chief

Costa Rica faces a "sustained deterioration" of its fiscal figures, warned Rodrigo Cubero, president of the Central Bank. He highlighted that the nation's two most significant tax revenues, value-added tax (VAT) and income tax, have seen a decline. This downturn is directly linked to the country's sluggish economic growth.

Cubero's assessment comes amid growing concerns within political circles about the state of public finances. Even members of the ruling party have begun discussing the necessity of tax reforms. Nogui Acosta, the ruling party's chief of fraction, has publicly stated that Costa Rica's VAT rate is too low, indicating a potential shift in official thinking towards fiscal adjustments.

The weakening fiscal situation carries significant consequences for the government's financial stability. The drop in tax collection directly impacts public revenue, potentially limiting the state's ability to fund essential services and investments. This trend is raising alarms and fueling debates about necessary fiscal measures to stabilize the economy.