Costa Rica’s business climate still weak on hiring, investment, study finds
Based on second-quarter performance, business owners in Costa Rica are the most pessimistic they’ve been in the past three years, a recent report found.
The latest survey by the Costa Rican Chambers Union and Private Business Sector Associations (UCCAEP) shows that 51 percent of employers believe the current business climate in the country is not favorable for short-term investments.
Although most private-sector employers said they do not foresee layoffs in coming months, 65 percent said they do not plan to hire more staff, and 61 percent said they would not invest in the next six months.
The business sector perception index, which covers April, May and June, is 4.5, the same number as in 2009, a year of global economic crisis.
Costa Rican employers mostly blame distrust of the political sector, high electricity rates and recent credit restrictions imposed by the Central Bank for their pessimistic outlook, the study found.
UCCAEP has been conducting the business perception survey for 17 years, and this year’s study surveyed some 500 business owners in the Central Valley. Survey results have a margin of error of 5 percent.
Similar studies released earlier this year by consulting firm Manpower also anticipated a “modest hiring climate” for this year, with only 23 percent of employers expected to hire more workers in 2013.
You may be interested
Costa Rica investing $42 million for health facilities in GuanacasteAlejandro Zúñiga - July 22, 2019
Costa Rica's Social Security System (Caja), which manages the country's socialized health care system, announced Monday a $42 million plan…
Eighty-four Ticos participating in the 2019 Pan American GamesAlejandro Zúñiga - July 22, 2019
The 2019 Pan American Games begin Friday, July 26 in Lima. Eighty-four Costa Rican athletes -- 44 women and 40…
Slothy Sunday: Counting down to the 4th annual Sloth Ironman GamesZara Palmer / Toucan Rescue Ranch - July 21, 2019
Did you know that there is an internationally recognized holiday all about sloths? That’s right – there is, in fact,…