Costa Rica's Textile Industry Dips

Ten years ago there were 120 companies which employed 30,000 people, whereas today there are 60 companies employing only 8,000.

Wednesday, June 20, 2012

An article in highlights the bankruptcy closure of the Compañía Textil Centroamericana as a basis for analyzing the decay of a once very important productive sector in the Costa Rican economy.

Executives from companies still involved in the market indicate that the main cause the industry’s deterioration is that "domestic labor is more expensive than in the rest of the Isthmus and in Asia."

Other factors identified include increasing prices of raw materials and the high amount of social security contributions paid for employees.

Several companies have closed their doors in Costa Rica and have opened elsewhere in the region where there are lower operating costs.

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