Costa Rica Contraloría: 2026 H1 over-borrowing, social spending freeze

Costa Rica's Comptroller General concluded the government over-indebted itself in H1 2026, borrowing beyond required liquidity and raising the debt-to-GDP ratio, leading to public sector salary stagnation and frozen social investment. The finding is an official audit, but the political response and fiscal trajectory remain uncertain. This matters as it signals fiscal strain and potential social unrest in a country already facing debt sustainability concerns.