In 2011 the government of Laura Chinchilla continued to strengthen the political and economic stability. But due to her party's loss of control in the legislature, the decision-making of the government depended on the particular political party alliances. As a result, the reform agenda had little progress. The economic growth slowed down. Owing to the government's maintaining of a relatively high level of fiscal stimulus and social spending in the short term, the fiscal deficit went high in 2011. Unemployment was still a serious social problem. In foreign relations, the government insisted on a diversification strategy and emphasized on developing relations with China as well as maintaining good relations with EU and USA. The uncertainty of the world economy will last for a long time because of the contagion of the European sovereign debt crisis and the impact of the post-US subprime mortgage crisis. The government will strive to keep sustainable economic growth with the guarantee of a stable political situation in 2012. <<