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Costa Rica bankers offer $500 million trust to finance infrastructure projects ... - Tico Times

Costa Rica bankers offer $500 million trust to finance infrastructure projects ... - Tico Times | Costa Rica | Scoop.it
The Costa Rican Times
Costa Rica bankers offer $500 million trust to finance infrastructure projects ...
Noah Nelson's insight:

Bankers in Costa Rica met with President Luis Guillermo Solis with a plan to improve the country's economic growth, which included a $500 billion trust for funding infrastructure projects, creating a program to facilitate the access of loans to citizens with a low income, and giving technical support to small and medium businesses for measuring risk and opportunities.

 

This should help increase the economic growth because the increase in investment will cause an increase in capital stock, aggregate demand, and output.

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Coffee plant fungus raises prices, hurts farms, economy - Tuscaloosa News

Coffee plant fungus raises prices, hurts farms, economy - Tuscaloosa News | Costa Rica | Scoop.it
Coffee plant fungus raises prices, hurts farms, economy
Tuscaloosa News
Guatemala, El Salvador, Honduras, Panama and Costa Rica have all been hard hit. Much of the blander, mass-produced coffee in this country comes from Asia and other regions.
Noah Nelson's insight:

A fungus known as coffee rust has infected many coffee plants throughout Central America, destroying over $1 billion worth of coffee plants, causing a huge increase in the price of coffee.

 

This fungus is spreading throughout Central America, and Costa Rica's coffee plants have already been infected. This supply shock hurts Costa Rica greatly because coffee is one of their major exports. I suggest that they focus on producing other goods besides coffee in order to get their output back to the level of full employment until this fungus is taken care of.

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Costa Rica, Latin America falling behind the rest of the world in the booming ... - Tico Times

Costa Rica, Latin America falling behind the rest of the world in the booming ... - Tico Times | Costa Rica | Scoop.it
The Costa Rica News
Costa Rica, Latin America falling behind the rest of the world in the booming ...
Noah Nelson's insight:

Costa Rica, along with the majority of Latin America, is falling behind the rest of the world in how well they use the Internet to benefit their economy. Costa Rica has managed to outpace most of the Latin American region, ranking 3rd in the region and 53rd overall.

 

If Costa Rica continues to grow in the ways it uses technology, its long-run aggregate supply curve will eventually shift to the right.

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President Solís Plans To “Unshackle” Costa Rica's Dependence On ...

President Solís Plans To “Unshackle” Costa Rica's Dependence On ... | Costa Rica | Scoop.it
The volume and importance of trade with the United States affected Costa Rica's economy during the northern neighbour's recession years, with the country's GDP growth going to negative 4.6% a year after the American ...
Noah Nelson's insight:

The U.S. is Costa Rica's biggest trade partner by far, so when we went into a recession, Costa Rica was hit hard. Costa Rican President Luis Guillermo Solis wants to break Costa Rica's dependence on the U.S. in order to keep this from happening again.

 

I would recommend that they trade more with other Latin American countries so that they aren't completely dependent of the U.S. 

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Solis Takes Costa Rica Presidency Vowing Deficit Cuts - Bloomberg

InSerbia News Solis Takes Costa Rica Presidency Vowing Deficit Cuts Bloomberg Costa Rica President Luis Guillermo Solis, in his first speech to the nation after being sworn in, said the Central American country's fiscal deficit threatens the...
Noah Nelson's insight:

President Luis Guillermo Solis says that the budget deficit in Costa Rica must be resolved within the next two years. It is expected that the $45 billion economy's deficit will expand to 6%. Solis is also aware of the plans for 3,000 jobs to be cut by Intel and Bank of America, and people are worried that the economy is going to suffer greatly for it.

 

The problem I see with their current situation is that any fiscal policy they use to counter the rise in unemployment will only make the budget deficit larger, and vice versa.

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Morales: Costa Rica business leaders interested in Bolivia gas - Fox News Latino

Morales: Costa Rica business leaders interested in Bolivia gas - Fox News Latino | Costa Rica | Scoop.it
La prensa Morales: Costa Rica business leaders interested in Bolivia gas Fox News Latino Bolivian President Evo Morales said he met in Costa Rica with a group of business leaders who "begged" the Andean nation to ship $500,000 worth of natural gas...
Noah Nelson's insight:

The president of Bolivia, Evo Morales, had a meeting in Costa Rica with some business leaders who begged him to export $500,000 worth of natural gas to their country every year. 

 

This could be caused by a supply shock in Costa Rica that caused their supply of natural gas to decrease. This would've caused their aggregate supply curve to shift to the left, which causes an increase in price level and a decrease in real GDP. This would make them desperate for cheaper natural gas, which they can get from Bolivia.

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