Consumption Slows in Costa Rica

Spending is slowing in final household consumption, imports of consumer goods, bank lending for consumption and the monthly index of economic activity trade.  

Monday, October 20, 2014

Following the trend of slowdown seen in overall economic activity, consumer spending by Costa Ricans has lost dynamism, which is mainly seen in the expenses made ​​at supermarkets, gas stations and restaurants.

José Ignacio Cordero, CEO of Credomatic Costa Rica, told Nacion.com that "... For six years, an annual moderate growth has been seen, but sustained in industry billing and a change in preferences ... 'Six years ago, the three main categories of consumption were supermarkets, gas stations and airfares, while, at present, the category of restaurants has replaced airfares in third place. '"

Max Alberto Soto, director of the Institute for Research in Economics at the University of Costa Rica said that "... in 2013 influencing factors were quantitative credit limitation, the slowing economy, high unemployment and relative pessimism as measured by the consumer confidence index, this year also having an influence was the devaluation earlier this year, higher inflation and more expensive money."



More on this topic

Economic Slowdown: What Was No Longer Consumed?

January 2020

In the context of the economic slowdown that Costa Rica suffered for much of last year, 4 out of 10 families restricted their purchases of clothing and footwear.

Thirty-three percent of households reduced their spending on meals outside the home, and in the area of other recreation or entertainment expenses, 29% of households consulted said that during 2019 they restricted their spending, details the "2019 News Survey ", prepared by the University of Costa Rica (UCR).

Changes in Consumer Behavior

March 2019

The slowdown in the region's economies and political uncertainty are changing the way consumers in markets such as Guatemala, Costa Rica and Honduras make purchasing decisions.

The White Rabbit group carried out a study on buyer behavior in Guatemala, Honduras and Costa Rica, called "A New Guide to Understanding the Consumer", which analyses the perceptions prevailing in these markets in the region.

Costa Rica: Decline in Household Consumption

August 2017

A rise in interest rates and the depreciation suffered by the Colon against the dollar are the reasons for the slower speed with which private consumption has been growing since mid-2016.

The slower rate at which private consumption has been growing since the first quarter of 2016 is mainly due to an increase in interest rates in colones, which have increased the proportion of income that households have to dedicated to paying off debts. Businesses in the commercial sector believe that this trend towards a slowdown in household consumption could be reversed by the end of the year. 

Drop in Rate of Costa Rican Household Spending

October 2013

During the second quarter of 2013, consumer spending grew by just 3.03% compared to the same period last year.

This was announced by the Central Bank of Costa Rica in its quarterly publication on the gross domestic product (GDP) .

"... The result published was expected, because of the slowdown of Commercial IMAE and a fall in the confidence of traders.

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