American Expatriate Costa Rica

Banana and pineapple producers consider leaving the country

Banana and pineapple plantations companies are considering leaving Costa Rica to produce in cheaper destinations such as Colombia, according to their statements in a forum on competitiveness conducted by the Chamber of Exporters (CADEXCO).

The transnational companies feel that the country has become very expensive relative to other economies.

The Colombian government, on the other hand, is promoting a policy of attracting investment with subsidized interest rates for companies, especially agricultural ones, to occupy the areas where guerrillas used to be.

Gerardo Corrales, economist and speaker at the forum, said the dollar exchange rate is one of the main problems at this time.

“Colombia, Brazil, Mexico and Peru devalued the exchange rate. Therefore, the Costa Rican export sector has no way of competing in costs. In my opinion, the exchange rate policy has been very subject to inflation control, when there are rural areas with 30% of unemployment,” said Corrales.

Production costs in these countries, as well as in Costa Rica, may rise 30%, but the difference is that their income will increase 60%, whereas in Costa Rica it will only rise 2% to 5 %.
diarioextra.com