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Significance

The situation has been attributed largely to the emergence of the highly contagious Omicron variant. Case numbers look set to continue rising for much of the first quarter of 2022, posing health and economic challenges regionwide.

Impacts

Rising cases may affect Costa Rica’s elections in February, with politicians seen as more reliable on healthcare issues likely to benefit.

Tourist areas may see a slowdown in arrivals, as rising cases within the region and in key source markets deter international travel.

Planned investments may be delayed until after the current wave subsides, as investors assess the economic impact.

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