Costa Rica trade deficit shrinks
Import and export numbers both sustained considerable blows in January from the global economic crisis, but the traffic of incoming shipments slowed further than that of outgoing goods, bringing down Costa Rica´s trade deficit by 52.7 percent.
Imports shrank in January by 32.6 percent from the same month last year, while exports went down 17 percent. Economists continue to declare a recession, though state officials and the Central Bank are still avoiding the “R” word (see last week´s story).
“The drop in imports reflects a lower domestic demand, resulting from the rise in interest rates, the recession the country is experiencing, and the drop in the prices of fuel,” consulting firm Aldesa said.
In terms of exports, the recession in the United States, the chief importer of Tico-made goods, continued to cut into companies´ earnings here. Last month saw $220.7 million in goods exported to the U.S., down by 17.6 percent from January 2008, according to the Foreign Trade Ministry (COMEX).
Of all exports, computer parts were hit the hardest, said COMEX, citing losses of as much as $56 million, or 30 percent.
“One of the principal causes of the lower level of operation of exporting companies is based on the difficulty in this sector to attain lines of credit,” Foreign Trade Minister Marco Vinicio Ruiz said in a statement.
Amid the grim figures, the Foreign Trade Promotion Office found a ray of hope: Canada. Against the grain, exports to Canada rose by 9.7 percent in January compared with the same month last year, with ornamental plants, tires, pineapples and textiles driving the increase.
You may be interested
Vaccinated people don’t have to self-isolate after Covid contactAlejandro Zúñiga - March 8, 2021
People who are fully vaccinated against Covid-19 won’t have to isolate if they are a close contact to someone who…
Starting in April, Manuel Antonio NP will be open on MondaysAlejandro Zúñiga - March 8, 2021
Costa Rica’s most popular national park is switching up its hours. Starting April 1, Manuel Antonio National Park will remain…
Costa Rica unemployment disproportionately impacts womenAlejandro Zúñiga - March 8, 2021
Unemployment in Costa Rica is at 19.1%, but the job loss provoked by the pandemic has predominantly impacted women. According…