The State of the Nation Report 2019 reveals that Costa Rica has worsened in many areas in the last year. However, things are more delicate regarding family finances, according to the director of the State of the Nation Program, Jorge Vargas Cullel.
The researcher said that two elements further complicated the situation in the period that was subject to investigation: the low generation of employment and the very high level of indebtedness that afflicts the family nuclei.
Last week we did a survey with a national sample and half of the households have debts and of that half, 8 out of 10 borrowers said that after paying, they have very little left,”
That problem, according to Vargas, closed one of the ways for the country to try to revive the economy, since it has not been possible to stimulate consumption due to the high level of household indebtedness.
People are experiencing great difficulties. Eighty-nine out of every hundred people reported to us that they are having many difficulties to make ends meet. Hence the call that the report makes to act with enormous responsibility. The situation is too fragile and a calculation error can compromise us even more,”
On Tuesday, the Central Bank of Costa Rica (BCCR) reported that the monthly economic activity index (IMAE) shows symptoms that the economy is recovering.
However, Vargas called for caution because the degree of recovery presented by the economic pace of the markets is not a green light, in his opinion.
The State of the Nation Report concluded that the general situation of the country is critical and that this situation requires responsible and appropriate actions from the political system.