Pandemic will hit Costa Rica’s welfare systems

Significance

A strong healthcare system together with early implementation of social distancing measures and social assistance support has kept contagion levels low. The crisis is nevertheless hitting health funding particularly hard as a result of growing unemployment and insufficient payroll contributions.

Impacts

• Lack of regulation of private health provision could increase health inequalities and further erode the public system.
• High infection rates in Panama and likely under-reporting in Nicaragua will see Costa Rica maintain border restrictions for the time being.
• The country’s decision to slow down its economic re-opening is a warning sign for the rest of Latin America.