No menu items!

COSTA RICA'S LEADING ENGLISH LANGUAGE NEWSPAPER

HomeTopicsBusinessCosta Rica's food industry joins growing chorus of private-sector complaints

Costa Rica’s food industry joins growing chorus of private-sector complaints

Leaders of Costa Rica’s food industry on Tuesday reported that their production has increased by only 1.79 percent this year, a low figure that has prevented the sector from growing or creating new jobs. It also increases uncertainty for next year, they said.

The Costa Rican Food Industry Chamber (CACIA) on Tuesday presented the report “Results for 2014 and Expectations for 2015,” which also notes that Costa Rica for the second consecutive year has tallied the worst employment figures in the last 10 years.

The local food industry laid off 249 workers this year, due to a drop in domestic and international sales, CACIA President José Manuel Hernando said.

Businesses this year exported 5.3 percent less than in 2013, the only decrease in exports registered by the sector in the past decade.

“In this context and with all the contradictions expressed by our government, we expect a less-than-flattering 2015,” Hernando said. The chamber’s projection for next year is less than 1 percent growth, with a similar number of layoffs, he added.

Among the “government’s contradictions,” Hernando said President Luis Guillermo Solís had promised no new taxes for at least two years.“Just six months later, an increase in sales tax from 13 to 15 percent is currently under discussion,” he said.

The CACIA leader also claimed that Solís pledged not to approve more trade agreements and focus on improving internal competitiveness. But there is strong pressure to approve tax exemptions and other benefits due to Costa Rica’s affiliation with the Pacific Alliance, he said.

Hernando said that Solís also had promised to maintain electricity rates unchanged until next year and to evaluate increasing the participation of private generators.“But rates are still hiking and Solís has closed options for more private electricity generation,” he said.

Solís’ controversial lifting of a veto on the Labor Procedures Bill also was part of the chamber’s report. CACIA leaders — like other private-sector groups — oppose that move, claiming the president broke a promise to postpone discussion of the veto for at least one year.

“Solís has signed a blank check in favor of the most radical labor groups, who are now more likely to paralyze the country and are now protected by law,” Hernando said.

The chamber leader claimed the president’s decisions “reinforce the lack of direction the country is showing right now and affect local entrepreneurs’ capacity to create more jobs.”

CACIA’s findings coincide with results of a study by consulting firm Deloitte that on Monday reported 45.2 percent of private-sector employers who were surveyed believe the country’s economic situation will worsen within a year.

Trending Now

Costa Rica Looks to Ukraine for Drone Technology in Security Fight

Ukrainian President Volodymyr Zelensky and Costa Rican President Laura Fernández exchanged invitations for official visits during a phone call yesterday, as the two leaders...

How to watch Serena and Venus Williams play doubles in Costa Rica today

Serena and Venus Williams play doubles at the Cincinnati Open tonight at 5 p.m. Costa Rica time. Here is where to watch it and what to avoid.

New Coral Species Found Off Costa Rica Gets a Name From Tolkien’s Elvish

A bright yellow coral found on seamounts off Costa Rica was so distinct that scientists created an entirely new family for it, then named it in Tolkien's Elvish.

Costa Rica Seals Security Contracts as “Operation Pegasus” Remark Goes Unexplained

A decree in force since August 10 seals Costa Rican security records including procurement files, as a governing-party lawmaker's unexplained "Operation Pegasus" remark sharpens the dispute.

Nicaragua Bishop Abelardo Mata Says He Is Well After Detention

Catholic Bishop Abelardo Mata, a critic of Nicaraguan President Daniel Ortega, said he is in good condition in an interview broadcast Wednesday by the...

Mother’s Day Is a Full National Holiday in Costa Rica

Today is Día de la Madre, and it is a full national holiday in Costa Rica, not just a greeting-card occasion. Public offices are...

Latin American Qualifiers Face Double-Duty Day at Cincinnati Open

Latin America’s Cincinnati Open contingent faces a high-pressure Wednesday after severe weather disrupted the opening day of qualifying, leaving several players from the region...

Costa Rica Wildlife Study Records 79 Species at Reserva Conchal

A year-long wildlife study at Reserva Conchal in Guanacaste documented 79 species of mammals, birds and reptiles, nearly double the 40 recorded during the...

Costa Rica Under Orange Alert as Caribbean Ground Reaches Saturation

Updated Monday at 11:40 a.m. Route 32 has reopened. The Río Chirripó bridge on Route 4 is closed. The ground across the Caribbean can no...
L. Arias
L. Arias
Reporter | The Tico Times |
🌴 The Weekly Pura Vida

Costa Rica, Once a Week

The week's top stories, weather & insider tips — delivered every Sunday. One email, zero clutter.

🔒 Free. No spam. Unsubscribe anytime.

Loading…

Latest News from Costa Rica

Costa Rica Coffee Maker Chorreador
Costa Rica Car Rentals
Costa Rica Travel Insurance
Costa Rica Travel