The discussion, approval and implementation of the Law on Strengthening Public Finances, as well as strikes and demonstrations, accentuated the uncertainty among consumers, causing an even more accelerated contraction of consumption.
This is one of the main conclusions reached by the Economic and Social Observatory of the National University (UNA) in a recent report on private consumption in Costa Rica.
These situations generated since the previous election campaign and which have lasted until now have caused fewer people to feel motivated to consume in the country, since there is a greater tendency to be cautious with expenses.
The big problem is that at the moment there are no clear signs that private consumption is recovering, since a good part of the indicators associated with this variable (vehicle sales, appliance trade, consumer goods imports, consumer confidence) consumer, etc.) continue to record negative results.
According to the report, the real private consumption of households has been decelerating since the third quarter of 2015.
The best moment was in the third quarter of 2015 when the growth was 5.42%. Since then it has been reducing the growth rate.
The immediate effect of this lower level of expenses is produced in what this weighs within the Gross Domestic Product (GDP).
By 2008, consumption within the GDP had a relative weight of 70% and by this year it had already fallen to 63%.
This means that consumer spending has lost importance and weight within the economy, in other words, it is an engine that no longer revolutionizes at the same speed as before.