The Worries That Keep Businessmen Awake At Night

The high cost of energy and the fiscal deficit are two of the problems that worry companies in Costa Rica, who also face an uncertain political scenario, a few weeks to go before a second round of elections.

Thursday, February 15, 2018

With a month and a half to go before a second round of elections, Costa Rican businessmen highlighted a difficult year in terms of job creation and attraction of new investments.

In this context, the high cost of electricity remains the main factor of concern for entrepreneurs Four out of five companies say that the price they pay for electricity is expensive compared to competing countries, and 59% believe that these rates reduce competitiveness

On top of this is the problem of the growing fiscal deficit. Arturo Pacheco, president of the Costa Rican Union of Chambers and Associations of the Private Business Sector (UCCAEP), believes  "... the fiscal issue has an influence because entrepreneurs fear new adjustments, and this translates into confidence in the sector. "For the productive sector, there is an urgent need to restore credibility, confidence and through this reactivate the economy."

From the report by the UCCAEP :

February 14, 2018  The high electricity rates  paid by companies is having an impact on the country's competitiveness, the generation of more sources of employment and the attraction of new companies. This is revealed by the most recent data from the Quarterly Business Survey "Pulso Empresarial", carried out quarterly by the Costa Rican Union of Chambers and Associations of the Private Business Sector (UCCAEP). 

In the recent survey, which was conducted from January 22 to February 2, entrepreneurs were asked what they thought of the price of electricity, in relation to the price paid by their main competitors and 80% responded that it was "very expensive" or "expensive". In addition to this, 59% of them think that these rates reduce their company's competitiveness. 

Read full release (in Spanish).

More on this topic

Business Confidence Remains Stagnant

August 2018

In Costa Rica, the private sector is recommending that the Alvarado administration implement effective measures to reactivate the national economy and a plan to recover the country's competitiveness.

Entrepreneurs are not very optimistic about the development of their businesses in the coming months, since when comparing the business confidence indicator of today (6.2) with that of a year ago (6.4) it can be seen that it is at the same level as twelve months ago.

Costa Rica: Little Optimism for 2015

November 2014

Business confidence is still falling with complaints being made about the absence of an agenda which aims to improve the business climate in the country.

From a statement issued by the Costa Rican Union of Chambers and Associations of Private Business Sector (UCCAEP):

Business confidence falls at the end of the year

Quo Vadis Costa Rica?

August 2014

The productive private sector is signalling a lack of dialogue and clarity as well as conflicting messages from the authorities of the new Costa Rican government, which is also proposing laws that discourage investment.

An increase of more than 4% in the salaries of public officials, lack of action over lowering the cost of energy, lifting barriers which generate legal uncertainty, and initiatives to increase the tax burden on the formal productive sectors are the issues concerning entrepreneurs in Costa Rica.

Costa Rica: High Cost of Electricity Reducing Competitiveness

February 2014

Employers are complaining that the cost of electricity is the factor which is pushing up production costs the most.

From a press release issued by the Costa Rican Union of Chambers and Associations of Private Business Sector (UCCAEP):

"The cost of electricity is the factor that is pushing up production costs for companies in Costa Rica the most.

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