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Costa Rican Economy: the good, the bad and the ugly

August 17, 2016 by Staff News Writer

Regarding Costa Rican economy, there are good, bad and ugly news.

The good news:

The economists recognize a controlled inflation, a growth higher than the one of the country’s main trading partners, a fiscal deficit lower than the expected and low interest rates among others.

The prices will stop rising compared to some decades ago, because economic experts believe so. (in economics, it is called a self-fulfilling prophecy).

Sectors such as agriculture and industry, that had been left behind, are finally seeing the light at the end of the tunnel, thanks to less weather events and to the rise of medical devices instead of electronic components, respectively,

said Greivin Hernández, economist at the National University.

The bad news:

An unstoppable fiscal deficit, which is financed by a rising public debt and dollars high debt, threatens the non-revenue generating companies, that use foreign currencies, if there’s depreciation.

The ugly news:

The trimester unemployment report showed stagnation and warned of a workforce’s reduction.

The Central Bank report does not hide the precarious employment situation, it accepts that although in the first quarter of the year, unemployment rates fell to 9.5%, this was due to a reduction of the economically active population, which means that people stopped looking for jobs, “

said the economist.

crhoy.com

Related articles:

  1. Unemployment: alarming information
  2. Interest rates will remain stable during 2016
  3. Expert says Costa Rica is heading to a devaluation
  4. CACIA will discuss Costa Rican economy
  5. Banco Central de Costa Rica forecasts higher interest rates
  6. Central Bank has $7.2 billion in reserves to prevent steep rise in dollar

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