Costa Rica: Consumption Slows

Distrust by households about the economic future is slowing the growth of consumption.

Monday, July 11, 2011

The projections on consumption behavior made by the private sector for this year differ from government authorities.

A joint study by Unimer and El Financiero indicate that Costa Rican household consumption will grow 3.3% by the end of 2011, less than the 4.3% forecast by the Central Bank of Costa Rica. However, the projection of the BCCR may show some variation this month when a review of its macroeconomic program is presented.

Why is consumer confidence diminishing? The weak fiscal situation facing the government, expectations about the U.S. economic recovery, among others, could be some of the elements behind consumer's perceptions in Costa Rica.

An article in Elfinancierocr.com states: "the projection of consumption is built based on a function of the results obtained from the Consumer Confidence Index (ICC), together with employment data generated by the Social Security Department. Therefore, if the the first component drops, so does the estimate and, in this case, it freezes compared to 2010.



More on this topic

When Confidence Disappears

September 2019

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).

Economic Challenges Ahead

February 2019

The pessimism expressed by consumers in Costa Rica and the constant deterioration of business expectations in Guatemala reflect part of the complex challenges faced by Central American economies this year.

A report prepared by the School of Statistics of the University of Costa Rica (UCR) shows the negative trend that come showing the economic expectations, because between February 2018 and the same month of 2019, the Consumer Confidence Index (ICC) fell 15%.

Costa Rican Consumer Confidence Remains Unchanged

May 2010

The Consumer Confidence Index in Costa Rica remained unchanged from February to March.

Developed by the University of Costa Rica (UCR), the Consumer Confidence Index stood at 53.5 in May, down from 54.2 in February (the scale goes from 0 to 100, anything over 50 implies a favorable outlook).

Consumer confidence in Costa Rica falls

August 2008

A study done by the University of Costa Rica says that the current and future outlook of Costa Ricans is worst since 2002.

In November of 2007 the Consumer Confidence Index increased by almost 58 points a note worthy rating. However, in just nine months this figure dropped dramatically to 31.6, the lowest rating since September 2002.

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