Costa Rica experienced a widening trade deficit of USD 377 mln in February, escalating from the previous year’s USD 286 mln. The rise was driven by an 8.6% YoY increase in exports, mainly attributed to companies in special tax regimes, while imports surged by 12.4% YoY. The cumulative trade deficit for January-February stood at USD 901 mln, slightly above the previous year’s USD 875 mln. The real exchange rate’s rapid appreciation has sparked concerns among exporters and pressure on the central bank to expedite monetary policy easing. Still, from a long-term perspective, the real effective exchange rate (REER) appreciated by about 10% relative to pre-pandemic levels.