No menu items!

COSTA RICA'S LEADING ENGLISH LANGUAGE NEWSPAPER

HomeTopicsBusinessPrivate sector confidence remains lukewarm

Private sector confidence remains lukewarm

The confidence of Costa Rica’s business sector remains low, as does its perception of President Luis Guillermo Solís, according the latest survey from the Union of Private-Sector Chambers and Associations (UCCAEP), released Wednesday.

UCCAEP’s Business Confidence Index for Q2 2016 remains stagnant at 6 out of a maximum of 10 points. The figure has remained nearly unchanged for the past two years.

The survey collects opinions from private firms distributed in seven production sectors. This time research found that employers from three sectors, tourism, commerce and construction, showed a slight increase in confidence from the previous quarter.

Confidence among employers in the services, industry and finance sectors declined, while confidence in the agriculture sector remained unchanged.

UCCAEP leaders said perceptions about the country’s situation will mostly be reflected in lower levels of investment and hiring for the upcoming months.

Only a quarter of surveyed employers said they are planning to increase staff in the next twelve months. Nearly 70 percent said they are not considering any changes in staffing levels.

Among those considering adding more employees, 41 percent said they plan to hire semi-skilled workers, 15 percent will hire technical workers and 13 percent will recruit professionals.

Most respondents, 88 percent, said they are not considering layoffs in the next year, while 8 percent said they planned to cut staff.

UCCAEP President Franco Pacheco said the government has neglected the private sector and that the country’s current fiscal uncertainty does nothing to promote investment.

“The constant changes in tax policies promoted by the Finance Ministry only foster uncertainty and confusion,” Pacheco said during the presentation of the survey results.

Solís gets tepid rating from private sector

UCCAEP also asked employers to rank the performance of both President Solís and the Legislative Assembly on a scale of 1 to 10.

Neither of them ranked well: Solís received a 5, while lawmakers received a 4.4.

A majority of employers, 66 percent, said their main complaint is that the executive and legislative branches lack an articulated agenda aimed at improving the country’s business climate.

The survey included responses from 460 CEOs and CFOs. Most of them, 70 percent, work for local companies. The survey has a margin of error of 3.6 percent and a confidence level of 95 percent, UCCAEP reported.

Trending Now

Costa Rica Pushes USA to the Brink but Falls in Penalty Heartbreak

If you just caught the end of the USA vs. Costa Rica Gold Cup quarterfinal, you probably feel like you need another cup of...

Costa Rica’s Cutris Mining Bill Threatens Massive Environmental Damage

Costa Rica’s government is pushing a controversial bill that could open the entire Cutris district in San Carlos—848 square kilometers—to open-pit gold mining. The...

El Salvador Slams Paris Fashion Show Inspired by Cecot Mega-Prison Inmates

The president of El Salvador, Nayib Bukele, joked on Saturday that he could send inmates from his mega-prison to France, after they were represented...

Costa Rica Maintains Economic Stability Amid Global Tensions

Costa Rica is holding steady economically despite global tensions sparked by conflicts involving Israel, the United States, and Iran, according to Federico Quesada Chaves,...

Hondurans March to Mark 2009 Coup as Election Battle Heats Up

Thousands of government supporters marched Saturday in the capital of Honduras to commemorate the anniversary of the 2009 coup that ousted then-leftist President Manuel...

Costa Rica Surf Film Festival Honors ‘Pura Vida Bodysurfing’ with Top Audience Award

Pura Vida Bodysurfing is an award-winning short film that strips surfing back to its essence—riding waves without a surfboard. Filmed across Costa Rica’s legendary...
L. Arias
L. Arias
Reporter | The Tico Times |
spot_img
Costa Rica Tours
Costa Rica Coffee Maker Chorreador
Costa Rica Coffee Maker Chorreador
Costa Rica Travel Insurance
Costa Rica Rocking Chait
Costa Rica Travel

Latest News from Costa Rica