Costa Rica: Construction Sector States Critical Issues

Lack of infrastructure, excessive paperwork and poor access to housing hinder recovery of the construction sector.

Monday, January 17, 2011

2010 closed with a slight 11% increase in M2 processed, for 2011 it is expected to grow by 12% compared to 2010.

Mr. Ricardo Castro, president of the Costa Rican Chamber of Construction (CCC), made a passionate call to Government authorities to take action against deterioration of competitiveness in the country and promote a national economic recovery.

During the press conference, Castro stated that development of infrastructure through trusts and grants, reduced paperwork and improved access to housing, are key points for a speedy recovery in the construction sector and with it employment generation in related activities.

"Today´s problem is the same one we have had for more than 30 years, the lack of planning for medium and long term infrastructure, it is inconceivable and unacceptable that we continue talking about development plans for 4 years," expressed the engineer, adding that development of infrastructure should continue through concessions, thus avoiding the state diverting resources from social investment."

More on this topic

Prospects for Construction Sector in Costa Rica

January 2012

In order to keeping growing in 2012 at the rate of 15% registered in 2011, the sector depends mostly on government actions.

A statement from the Costa Rican Chamber of Construction (CCC) reads:

14.2% growth in the sector will depend on external factors

• Fiscal Plan, employment generation, access to housing for the middle-class, red tape and infrastructure improvements are the main issues of concern to the construction sector.

Industry Slows Down in Costa Rica

December 2011

The Chamber of Industry states that the causes are: high fuel prices, electricity and raw materials, the exchange system, bureaucracy, taxes and social security, and access to financing.

After the global crisis started in 2008, there was a hint of recovery in the sector in 2010, which was not confirmed in 2011, when growth was only 2%.

Poor Prognosis for "Second Homes"

September 2011

In Costa Rica, this niche market was hit hardest by the U.S. housing crisis.

According to the Costa Rican Chamber of Construction the outlook is not encouraging and they do no foresee recovery in the short term.

Jose Alfredo Sanchez, vice president of the group, said "In Costa Rica, there has been a dramatic effect on the coast, where (project development) has not recovered in the short term because this would require strong economic growth in the U.S., which is not happening. "

Costa Rica: Construction Lacks Public Investment

August 2010

The drop in state construction this year has worsened the sector's situation, already troubled since the beginning of the financial crisis in 2008.

The completion of large projects and the lack of funds to begin projects are two of the reasons for the slowdown in public sector construction.

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