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Costa Rica protests to hinder Alvarado’s reforms

Wednesday, July 3, 2019


The demonstrations form part of a broader backlash against the government’s newly introduced value-added tax (VAT) and indicate the depth of popular feeling building against President Carlos Alvarado.


  • The risk of watering down the new VAT regime will raise concerns among investors about the government’s commitment to fiscal rigour.
  • Delaying VAT implementation would also force the government to cut social spending in order to hit its fiscal deficit goals.
  • The evangelical movement will demonstrate its strength in further protests throughout Alvarado’s term.

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