No menu items!

COSTA RICA'S LEADING ENGLISH LANGUAGE NEWSPAPER

HomeNewsCosta RicaPoverty rate rises in Costa Rica to highest level in decades

Poverty rate rises in Costa Rica to highest level in decades

Poverty in Costa Rica reached 26.2% of households, the highest level in almost three decades, amid the impact of the Covid-19 pandemic, the official statistical agency reported Thursday.

The poverty index has risen 5.2 percentage points from last year, according to the National Household Survey, carried out in July by the National Institute of Statistics and Census (INEC).

Extreme poverty, meanwhile, reached 7% of households, an increase of 1.2 percentage points since 2019, according to INEC data.

The last time that Costa Rica registered such a high level of poverty was in 1992, when it reached 29.4%.

The statistical agency defines as poor a family whose income is equal to or less than the cost of the basic food basket, calculated at about $80 per person per month. The canasta básica is an established list of staple foods and some non-food necessities considered the minimum required for a family’s survival.

The number of households in this condition grew especially in urban areas, where it stood at 26.4%, compared to 25.5% in rural areas.

The increase in poverty coincides with a sharp increase in unemployment since the start of the pandemic. Unemployment went from 12.3% before March — when the first cases of Covid-19 were detected — to 23.2% in the June to August quarter.

The government created the “Plan Proteger,” which allocates financing to assist families affected by the containment measures of the health emergency.

The INEC household survey also estimated that inequality in income distribution remained at levels similar to those of 2019, with a Gini coefficient of 0.519 on a scale of 0 to 1, where the highest number corresponds to the total inequality.

Trending Now

Syrian Smuggler Extradited from Costa Rica to Face U.S. Charges

Costa Rica authorities handed over a Syrian national to the United States after his arrest last year on charges of running a human smuggling...

Cities in Honduras and Guatemala ban Therian Meetups

At least eight cities in Honduras and Guatemala have announced over the past week that they are banning gatherings of so called “therians,” a...

FIFA Says Demand Is Driving Prices As World Cup Ticket Costs Skyrocket

From almost $900 for the opening game to over $8,000 for the final, match tickets are far from cheap for the World Cup which...

New Costa Rica Soccer Coach Promises Sacrifice and Discipline

New Costa Rica head coach Fernando Batista pledged hard work, sacrifice and strict discipline as he begins his mission to qualify the national team...

Aryna Sabalenka Engaged to Georgios Frangulis Before Indian Wells

Aryna Sabalenka, the top-ranked player in women's tennis, shared news of her engagement to Brazilian businessman Georgios Frangulis on Tuesday, just before the start...

Costa Rica Turns Sargassum Threat into Resource Opportunity

The massive influx of sargassum along Costa Rica's Caribbean coast has sparked fresh concerns over its effects on local ecosystems, fishing communities, and tourism....
Costa Rica Coffee Maker Chorreador
Costa Rica Coffee Maker Chorreador
Costa Rica Travel Insurance
Costa Rica Travel

Latest News from Costa Rica