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Saturday, November 16, 2024

Costa Rica’s Economic Crisis Prompts Businesses to Demand Policy Changes

Costa Rica’s business sector has called for a demonstration on May 15 to request measures in response to exchange rate effects. The mobilization coincides with the commemoration of National Farmer’s Day and will start at La Merced Park, pass by the Central Bank, and end at the Plaza de la Democracia.

The call includes workers from various economic sectors, including bananas, coffee, pineapples, rice, plants, flowers, citrus, free trade zones, construction, tourism, transportation, the export sector, and others affected by these issues.

Several companies had to close their operations and lay off personnel as a result of the abrupt appreciation of the colon, which made their operations unsustainable. On several occasions, company representatives have met with the Central Bank, but no agreement has been reached.

Given the situation, they have indicated their intention to demonstrate in defense of their jobs and livelihoods. They also emphasized their intent to protest in order to secure adjustments to economic, monetary, and exchange rate policies, aiming to prevent the loss of employment for one and a half million working people, particularly those who live in vulnerable areas.

“Should this situation persist, they would be compelled to cease operations in the country, leading to increased unemployment and a social crisis of unprecedented proportions,” they stated.

Shirley Calvo, executive director of the National Chamber of Tourism, explained that there is a “chain effect” since the increase in the cost of production leads to unemployment, meaning many families are unable to support themselves, and causes social problems such as insecurity, mainly in highly vulnerable rural areas.

The tourism, construction, freight transportation, and agriculture sectors together account for 47% of the Gross Domestic Product (GDP).

“The indifference of the authorities with the national productive sector that generates millions in foreign currency, jobs, and stimulates the economy inside and outside the GAM, has forced thousands of people to take to the streets, change their work for protest, and demand respect for the rights of those who produce in the country,” representatives of the business sector mentioned.

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