Business confidence in Costa Rica fell in the third quarter to levels reported in 2009, a year marked by the global financial crisis, and in consumer’s pessimism has also rebounded, because no effective and short-term measures are perceived that tend to reactivate the national economy.
Businessmen are not very optimistic about the development of their businesses in the coming months, as comparing today's Business Confidence Index (IEC) (5.3) with that of a year ago (6.2) shows a significant decline. In addition, this indicator accumulates 10 quarters of gradual slowdown, reported the Costa Rican Union of Chambers and Associations of Private Business Sector (UCCAEP).
In Costa Rica, the Central Bank predicted that confidence would again prevail among businessmen and consumers once the tax reform was approved, but that has not been the case.
In December 2018, after a year of proceedings in Congress and after having been reviewed in the constitutional instance, was approved by the Assembly of the country the file that corresponded to the Law of Strengthening Public Finances.
Although the goal for this year was to issue $100 million in debt bonds, during the first quarter the Nicaraguan government only awarded $1.1 million, doubting the level of investor confidence.
According to the "Public Debt Report, First Quarter 2019", prepared by the Central Bank of Nicaragua, from January to March regarding Investment Securities in dollars, 1.03 million was issued at an average rate of 5.31% and an average term of 7 months.
The index measuring confidence in the commercial sector in the second quarter of the year recorded the lowest level registered since it began in 2008, during the global financial crisis.
From a statement issued by the Chamber of Commerce in Costa Rica:
August 4, 2015.
The Business Confidence Index Sector (ICSC), collated by the Chamber of Commerce of Costa Rica, for the second quarter of 2015 stood at 79 points, which is the lowest value recorded since this quarterly measurement was first made (2008).
The latest cases of political corruption revealed, the fiscal crisis and the poor economic situation have plunged business confidence to its lowest level since 2009.
The business sector is not only concerned about what has happened, but what could happen in the coming months, as reflected in the results of the Central Bank index which measures perceptions of economic agents regarding the business and investment climate in the country.
The sum of growing state debt, increasing insecurity and lack of government actions aimed at recovering real production, is creating a perfect storm.
"... The Salvadoran Foundation for Economic and Social Development (FUSADES) said the country could be entering into a severe financial political and social crisis, if a stop is not put to the uncontrollable debt levels, and if the engines of economic growth keep being smothered. "
The confidence of the guild of merchants in the economic situation and future prospects has fallen to the lowest level in five years.
From a statement issued by the Chamber of Commerce in Costa Rica:
Companies in the commercial sector started the year with little optimism and demonstrated their distrust of the economic situation.
The Business Confidence Index Sector collated by the Chamber of Commerce of Costa Rica every three months stood at 86 points and for the first time since 2010, this measurement has fallen below 100 points in the first quarter.
The conflict between the Salvadoran government and the Italian company Enel has deteriorated the business climate and the country's image as an investment destination.
"The unwillingness of the government to enforce arbitration awards," breach of these and "the politicization of the conflict Between El Salvador and the investor" are some factors that the Salvadoran Foundation for Economic and Social Development (Fusades) identifies as a major cause of the loss of confidence of foreign investors in El Salvador.
Smuggling and corruption at customs offices, crime, legal uncertainty, falling tax revenues and ongoing political conflict are not good for business.
An editorial in Prensalibre.com clearly reviews the reasons that "in just 20 months indicators relating to entrepreneurs confidence in investing have gone from 80.77 % to 36.11% ."
With no certainty there is no confidence, which is the main capital of an economy for attracting investments.
The majority of employers surveyed believe that Costa Rica's economic situation has not changed compared to a year ago.
Deloitte Costa Rica presented the results of the seventh Business Barometer Survey, with data collected between managers of major companies operating in the country during April.
Recent macroeconomic performance and prospects
According to the seventh edition of the Deloitte Business Barometer conducted during April-13, just as occurred in the previous survey, the macroeconomic scenario has not changed significantly in the last twelve months.
High costs, legal uncertainty and insecurity are the reasons why Taiwanese investment is shying away from Honduras and also Guatemala.
So explained Elisa Chu Li-Hua , second secretary of the office of economic advice at the Taiwan embassy in Tegucigalpa. According to the diplomat, recently the global business advisory firm FTI Consulting evaluated 19 countries for investment risks, where Haiti, Venezuela, Honduras and Guatemala, are located in the top four, ie countries that are not suitable for investment.
A survey has revealed that 73% of Nicaraguan entrepreneurs distrust the country's judicial system, and perceive the state as very corrupt.
Despite this result, the fourth survey on Trust and Corporate Intent, conducted by the Nicaraguan Foundation for Economic and Social Development (Funides), notes a slight improvement in the situation.
"In a survey conducted by Funides with 58 companies representing 30% of the gross value of production of the country, employers said that in addition to the distrust in the application of justice, they also perceive a lot of corruption in state institutions," reported nuevodiario.com.
Given the current economic climate, distrust and pessimism has taken over Central American Business.
El Salvador published on its website: "While there are very particular circumstances in each country, a very promising future is not foreseen. One of the things that hinder economic development is the decline in credit and sales which has resulted in job losses.
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