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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More on this topic

Going Into Debt to Survive

March 2021

As a result of the economic crisis generated by the pandemic, it is estimated that four out of every five Central American companies were forced to increase their debts in order to sustain their operations.

According to the 2021 Regional Survey on economic reactivation prepared by the Federation of Chambers of Commerce of the Central American Isthmus (Fecamco), the resources obtained through indebtedness, served the companies to pay payroll, face rents and support operations.

Closing of Companies: Counting of the Damages

December 2020

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.

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.

Guatemala: Pandemic's Impact on Industry

June 2020

It is estimated that in the context of the spread of covid-19 in the country, eight out of ten companies in the industrial sector have reduced their sales and six out of ten have seen their distribution capacity affected.

The Chamber of Industry of Guatemala (CIG) conducted a survey to calculate the impact of the current health crisis on the operations of the country's industrial companies.

Commercial Sector Begins to Suffer from the Crisis

March 2020

Because of the health crisis generated by the spread of covid-19, shopping centers, restaurants, clothing and footwear stores, among other businesses, began to report a decline in commercial activity in Nicaragua.

Not all businesses in the commercial sector have been affected by the advance of the pandemic, as in recent days’ supermarkets and pharmacies have been crowded by consumers.

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