Closing of Companies: Counting of the Damages

In the first quarter of 2020, just before the crisis generated by covid-19 began, there were 72,972 formal businesses registered in Costa Rica. In the second quarter the figure fell 6% and by September there was a slight recovery.

Wednesday, December 16, 2020

Data from the Costa Rican Social Security Fund indicate that between the first and second quarters of the year the number of registered companies fell from 72,972 to 68,946. At the end of the third quarter the figure recovered slightly, with 69,412 companies registered.

Check out the "System for monitoring markets and economic situation in Central American countries" of CentralAmericaData.

This decrease in the number of businesses registered with Social Security is reported in the context of the pandemic that caused the covid-19 outbreak and the economic crisis that resulted from the restrictions imposed by the authorities.

Businesses in the commercial sector, such as hotels and restaurants, were most affected.

Jairo Mena, economic advisor to the Chamber of Commerce, told that "... at the employment level, the commercial sector grew from nearly 370,000 jobs in the first quarter of this year prior to the pandemic, to 288,000 in the third quarter. The reopening process led to a slight recovery in jobs between July and September."

The article adds that "... the Fund's report shows that microenterprises, i.e., those with one to five employees, were the formal companies most affected by the pandemic. Between July and September of this year, there were 51,728 companies with these characteristics, which meant a fall of 2,001 compared to 53,729 in the same period in 2019."

More on this topic

Economic Recovery: Far Away On The Horizon

January 2021

Because of the fall in economic activity and the restrictions imposed to contain the spread of covid-19, businessmen in Costa Rica and Panama predict that the process of economic recovery will not be completed in the near future.

In this crisis scenario generated by the covid-19 outbreak, the Costa Rican economy does not show clear signs of recovery, since during November 2020 the Monthly Index of Economic Activity reported a year-on-year fall of 6.2%, a decline similar to that reported in October, when it was 6.3%.

Economy in 2021: How to Accelerate Recovery?

January 2021

Strengthening the confidence of economic agents through a solution to the problem of public finances and moving forward with the process of vaccinating the population are key factors for the Costa Rican economy to recover quickly in the new year.

The spread of covid-19 and the restrictions imposed at the local and global levels severely affected most of Costa Rica's productive sectors, to the extent that the unemployment rate climbed to historical levels, several businesses were closed and economic activity fell sharply.

More American Tourists Arriving in Costa Rica

December 2020

Between October and November, the number of visitors from the US quadrupled, from 6,000 to 24,000, a rise reported in the context of the economic reopening and the reactivation of commercial flights.

The 24,606 Americans who arrived in the country during November, represent a little more than a quarter of the visits from the US registered in the same month of 2019, informed the Costa Rican Tourism Institute (ICT).

Fabrics: Factory Closes in Guatemala

August 2020

After 20 years of operation, Modas B.I. Apparel, a company specialized in the manufacture of clothing, decided to close its doors due to the economic crisis caused by the outbreak of covid-19.

The company operated an industrial plant that employed 800 workers and was located at Kilometer 8 of the Atlantic Highway, in the jurisdiction of the Department of Guatemala.

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