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According to La Nacion, Costa Rica’s Public debt has decreased and the image of a healthier economy attracts continued foreign investment. Additionally, Costa Rica’s Confidence Index has increased.
Costa Rica’s public debt recorded a spectacular reduction over the last five years. It went from 60 percent of the Gross Domestic Product (GDP) in 2003 to 45 percent last year. To the International Monetary Fund, the dip was even larger, because it quotes 43 percent in 2007. In addition, its forecast for 2008 is 40 percent. The lower debt springs from a combination of factors, including production growth, lower interest rates, and restricted government spending. The impact of the lower public debt on the people is perceived in aspects such as lower interest rates on loans for housing, as well as on the Government’s ability to invest more on roads, schools, and hospitals. Overall, the image of a healthier economy furthers the attraction of foreign investment, analysts agree.
Additionally, the confidence index – 0.0 to 3.0 range – for the Government increased from 2.36 in August 2007 to 2.55 in March 2008, the highest point since January 2003. The index is the average of a general evaluation of the government based on the answer regarding whether or not it discriminates among sectors, it is efficient in public spending, its officials are honest, and it is able to solve the problems of the nation.
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