Covid-19: Survey of Damage in Costa Rica

Given the economic crisis generated by the covid-19 outbreak, nine out of ten companies operating locally reduced their revenues and one out of three made temporary closures.

Thursday, February 25, 2021

Between May and August 2020, a COVID-19 section was included in the Directory of Businesses and Establishments (DEE) as part of the update, in order for businesses to indicate what the main effects of the pandemic were. It was confirmed that 94% were affected by Covid-19, where 91% indicated as main consequence the reduction of income, informed the National Institute of Statistics and Census (INEC).

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

Other relevant consequences indicated were the reduction of sales (90%), reduction of working hours (64%), reduction of payroll (32%), temporary closure (28%), increase of operating expenses (23%) and the implementation of telecommuting (15%), according to the report.

The document states that "... the results indicate that the sector most affected by Covid-19 was Commerce, where 96 out of every 100 companies reported having had some type of consequence due to the pandemic and the category Other sectors was the least affected, where 76 out of every 100 companies had consequences.  However, in all sectors of economic activity, the same behavior is observed as at the national level; that is, reduction of income, sales and working hours are the three main consequences indicated. In the case of Other sectors, the increase in operating expenses was also significant (46 out of 100).

On the other hand, 19% of the companies received some type of benefit to deal with the adverse effects caused by the pandemic. The main benefits received were the readjustment of financial credits (46%) and others related to the rent of premises and social charges (38%) (postponement of payment, reduction of the amount or non-payment, among others).

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