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Subject

COVID-19 impact.

Significance

Costa Rica entered a nationwide lockdown on March 16, as part of government efforts to identify and contain the spread of COVID-19. This lockdown has heavily disrupted economic activity, with non-essential businesses closing and the lucrative tourism sector effectively ceasing to operate. With no end to the crisis in sight, the country is headed for a sharp economic contraction in 2020.

Impacts

Weak pandemic control measures in Nicaragua will see more Nicaraguans enter Costa Rica illegally.

Costa Rica is likely to look to the World Bank for financing support.

Domestic tourism will recover before international tourism does once internal travel restrictions are eased, providing some relief.

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