Limited, albeit improving monetary and exchange rate flexibility; Fiscal rigidities that contribute to persistent budget deficits and a slowly rising debt burden; and Slow pace of policymaking and approval of reform legislation. Stable political system; High level of social development; and Increasingly diversified economy with favorable growth prospects. The ratings on the Republic of Costa Rica balance the country's limited monetary and exchange rate flexibility and persistent fiscal pressures with good prospects for long-term GDP growth, a stable political system, relatively high social development, and modest current account deficits largely funded by net foreign direct investment. Standard&Poor's Ratings Services expects real GDP per capita to expand 2.7% in 2013, sustained by an increasingly diverse base of both manufacturing
