I know a number of people who have blindly poured millions of dollars into this country without doing their homework. “Can’t change Stupid 101”: How is the economy doing and how does the country grow it’s GDP?
Costa Rica which used to stand out in the region because of its good relative level of economic, social and educational development, is accelerating its march downhill in terms of productive competitiveness, income distribution and training.
A national entrepreneur’s comments about how his half a century old company has no market problems and is in full swing in the phase of increasing investment, but can no longer keep production in the country because Costa Rica “has become very expensive and high risk”, is confirmation of the march downhill of the real economy.
“… High production costs in Costa Rica, such as electricity rates and the tax burden, coupled with uncertainty, has forced the company Alimentos Jack‘s to announce yesterday the transfer of 50% of its production to other countries,” said its president Andrés Ignacio Pozuelo, according to an article in Nacion.com.
The businessman added that “… Costa Rica is one of the countries with the fastest growing energy and manufacturing costs. For example in terms of the corn snacks produced by the company, the cost per kilo in El Salvador or Nicaragua, is 25% lower than it is here. The cost per kilo of potato chips produced in the US is about 30% cheaper than those produced on national soil, and for cookies and sweets production costs are 16% lower in Chile. ”
Meanwhile, during the National Congress of Private Enterprise, a representative from the State of the Nation Program, said “… Costa Rica is an expensive country, despite not having the levels of development needed to afford this luxury … “,” … one such example is that the country is 20% more expensive on average than the rest of the countries in Latin America. ” See: State of the Union: ‘Costa Rica is an inconveniently expensive country.
Representatives from the productive sectors are unanimous in concluding that the high cost of energy is one of the main factors in their loss of competitiveness compared to competitors abroad, as well as the inability of government to reduce the high and rising fiscal deficit, which is a serious factor for uncertainty over investment planning in the country.
Tom,
headline: Costa Rica: A Greek Drama in Central America
I have followed your newsletter for several years as I have been to Panama several times. Although Panama has some advantages, it also has it’s negatives. Having been to Panama, I felt it was not for me. I have lived full time in Costa Rica for 22 years and have seen the many changes, both good and bad. My question to you is why is it lately that you have to bash Costa Rica in your “Panama Perspective newsletter?” Are you so insecure about Panama that you need to downgrade your neighboring country? Don’t you have enough good to say about Panama? If your newsletter is about Panama, why do you even need to mention Costa Rica? I believe it is so you can dissuade people away from Costa Rica to Panama so you can sell more property.
Comparing Costa Rica to Greece is a true literary dis service and is pathetic journalism. Have some companies left Costa Rica due to expensive electricity or labor costs? Sure, but I think if you study Panama a little closer you will find that companies and business might just have a few things to complain about also. Costa Rica has progressed so far in the last 22 years. Their road infrastructure is 1000 times better. San Jose has never seen a recession or depression in those 22 years. In fact it has seen non stop building of commercial shopping centers and high rise office structures. You want to look at expensive cars driving around San Jose, there are so many you can’t count them. While in Panama, I didn’t see that.
Maybe you need to do your homework a little better if you really want to compare the two countries although I think you should stick to Panama as that is your place of business and interest. Costa Rica would be ahead of Panama in some areas and Panama would be ahead of Costa Rica in others. If Panama didn’t have the Panama Canal, what would it be today????
Tom, I will continue reading your newsletter, I do find it somewhat entertaining, but leave Costa Rica to survive on its own merits, it doesn’t need your negative “B.S.” help.
Robert Klenz
La Guacima, Costa Rica