Economic Slowdown: What Was No Longer Consumed?

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.

Wednesday, January 8, 2020

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).

You may be interested in "What are the characteristics of the consumer in Central America?"

The report states that "... It is estimated that in 2019, the number of restricted expenditure items is, on average, 5 (out of a total of 10 expenditure items) and a classification according to the number of restricted expenditure items shows that while 29.7 per cent of households made few or no restrictions on their expenditure (1.8 on average), 33.0 per cent made a high number (8 expenditure items on average). As expected, households with few restrictions are in a more favorable economic situation (36.3% can save), while those that reported a high number of restrictions are in a less favorable situation (only 8.2% can save).

In general, the results show that people are moderately aware of the measures the government is taking to overcome the economic crisis and that there is a more pessimistic than optimistic view of the impact they will have. This year, the spending items that were most affected in households were the purchase of clothes, shoes, meals outside the home and other recreational or entertainment expenses. In addition, as an alternative strategy to face the economic crisis, in half of the country's households at least one member has sought new ways to generate income.
"

Also see "Where are the consumers who spend the most?"

The results of this survey were compiled in the midst of a timid recovery of the economy, since in June 2019 the Monthly Index of Economic Activity (IMAE) began to show signs of recovery, behavior that has been maintained until October of last year.

See 2019 News Survey.

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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. 

Consumption Slows in Costa Rica

October 2014

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

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.

Signs of Slowdown in Nicaragua

July 2013

Economic growth remains above 4% but it is slowing down and becoming concentrated on a few activities.

The Nicaraguan Foundation for Economic and Social Development (FUNIDES) presented on Tuesday July 16 its second report on economic conditions in 2013, which indicates that economic growth remains above 4 percent, but is slowing down and is concentrated on a few activities.

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