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Costa Rica gridlock to compound Solis's unpopularity

Monday, October 31, 2016

Subject

Outlook for the Solis administration during the second half of its term.

Significance

President Luis Guillermo Solis is currently Latin America's least popular president, due largely to his perceived inability to legislate in the face of opposition obstruction. While economic performance has shown signs of strengthening over the course of this year, this has done little for the government's standing.

Impacts

  • Opposition control of key positions in the legislature will exacerbate government challenges.
  • Uncertainty about fiscal reform will weigh heavily on the growth outlook.
  • Low international oil prices will continue to act as a deflationary driver.

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