Investor-Friendly Duo Headed to Election Runoff in Costa Rica
Pro-Business Candidate Leads Costa Rica Election First Round
(Bloomberg) -- Costa Rica’s presidential election is heading to a second round between two candidates popular with investors: an ex-president pledging to attract foreign capital, and a former World Bank economist who wants to break up local monopolies.
Jose Maria Figueres, 67, who led the country during a four-year term in the 1990s, won the first round on Sunday. With 88% of votes counted, he had 27% of the total, according to the electoral authority. In a speech to supporters last night, he promised to turn Costa Rica into a business-friendly country where more citizens speak English.
“Costa Rica is going to become the winning country we all dreamed of, the winning country we all deserve,” Figueres said.
Rodrigo Chaves, 60, who served at the World Bank for nearly three decades, took second place with almost 17% of votes. In a speech on Sunday he pledged to reduce inequality, create opportunities for entrepreneurs and lower the cost of living by cracking down on uncompetitive practices by local oligopolies.
‘Good for Markets’
During the campaign, Chaves said he would continue talks with the International Monetary Fund and seek to eliminate tax exemptions for the wealthy.
“This second round match-up is a good outcome for markets, as both candidates favor fiscal consolidation and carrying on with an IMF deal, though both would renegotiate aspects of it,” Citigroup economist Esteban Tamayo wrote in a research note Monday.
Read More: Citi’s Tamayo Says Costa Rica Vote Outcome Positive for Markets
Third-placed candidate Fabricio Alvarado conceded on Monday morning in a Facebook post, and the other main contenders have also thrown in the towel. The ruling PAC party earned less than 1% of the presidential vote and will have no representative in congress.
Costa Rica’s dollar-denominated bonds due 2045 climbed 0.9 cent Monday to trade at 97.6 cents on the dollar.
A record 25 candidates were on the ballot sheets. Turnout was 60%, the lowest since at least 1953 for a first round vote, according to a local university. A runoff is scheduled for April 3.
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