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

Taylor Swift, Travis Kelce and the Costa Rica Sloths Named After Them

As Taylor Swift and Travis Kelce draw global attention around a reported wedding celebration at Madison Square Garden in New York, Costa Rica’s...

Costa Rica Warns of Portuguese Man-of-War on Caribbean Beaches

Portuguese man-of-war have been reported along several beaches on Costa Rica's Caribbean coast, including Cahuita, Tortuguero, Manzanillo, Punta Uva, Puerto Viejo and Cocles, after...

Costa Rica Geologists Call for National Plan as Illegal Gold Mining Spreads

Costa Rica’s illegal gold mining problem is no longer confined to the long-running Crucitas debate, the Colegio de Geólogos de Costa Rica warned, calling...

Argentina Leads Latin Push as Wimbledon Day 2 Opens

Latin America’s Wimbledon campaign moves into a crowded second wave Tuesday, with nine singles players from the region scheduled for first-round matches across the...

Costa Rica Rounds Bus, Taxi and Toll Fares as the ₡5 Coin Exits

Hundreds of bus fares, along with selected taxi, train and toll charges, will shift up or down by a few colones starting July 1,...

What Is an Arribada? Costa Rica’s Mass Turtle Nesting Event Explained

Every year, on a stretch of dark volcanic sand on the Nicoya Peninsula, one of Costa Rica’s most remarkable wildlife events unfolds. Thousands, and...

Inside the Pecho de Rata Fortune and a Trunk Full of Cash

In his own recorded telling, it played out like a doting grandfather's anecdote. Edwin López Vega — the alleged narcotrafficking kingpin known across the...

Costa Rica Sends Rescue Mission to Venezuela After Devastating Earthquakes

Costa Rica has sent a rescue and humanitarian mission to Venezuela after two powerful earthquakes left widespread damage, collapsed buildings and an urgent need...

Costa Rican Travelers Get New Global eSIM Option

Costa Rican telecommunications brand kölbi has launched a new Global eSIM service with Airalo, giving travelers a way to buy international data packages before...
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