Costa Rica is in a good position to weather the global recession that many believe will last well into next year, says noted economist and former Finance Minister Fernando Naranjo.

Speaking yesterday before a Union of Private Sector Chambers and Associations luncheon, Naranjo said the country's economic position is considerably better than it was during the severe economic crisis of the late 1970s and 1980s.

“We won't have a crisis,” said Naranjo. “We are in a very solvent economic situation, with a budget surplus of about 1 percent of GDP.”

He said growth will slow to about 2.5 percent, as will foreign investment, but the government can stimulate the economy by spending the surplus on social programs and infrastructure.

University of Costa Rica and former legislator Constantino Urcuyo told the luncheon crowd that Costa Rica is a country in search of a different identity than the historical one of coffee-growing republic.

The process of urbanization and the disappearance of political consensus among establishment will oblige leaders to look for a new, more forward-looking identity for the country, he said.