San Jose [TCRN] – A study by the Central Institute for Fiscal Studies (ICEFI), called “Fiscal policy in Central America in times of crisis,” collected fiscal data from 2001 to 2010 of six Central American countries was released in Costa Rica on July 18th, 2012.
Central America fared well since the international economic crisis unraveled in 2008, but the battle is not over yet as raising revenue and public spending become the focus moving forward.
The report showed Central America while showing the highest economic growth on 30 years still faces its biggest challenge in 30 years
Central American countries reduced their debt and deficit during the good years, but wages and public spending is important now, since the average rate of growth in social spending was 7.1% above economic growth.
The average tax burden in Central America varies by 15% and for 2010. The fiscal deficit of El Salvador was 4.3% of gross domestic product (GDP), followed by Costa Rica (3.4%), Honduras (3%), Guatemala (2.7%), Panama (1.6%) and Nicaragua (0.9%).
The Costa Rica News (TCRN)
San Jose Costa Rica