Strengthening government institutions in the areas of contract enforcement, property rights protection and investor protection are part of the recommendations made by the IMF in its most recent visit to the country.
According to the international organization, policies to regain the confidence of the private sector, including a frank assessment of the impact of recent measures, are essential to promote economic recovery and compensate for increased poverty. In the short term, strengthening government institutions in the areas of contract enforcement and efficiency of the legal framework for dispute resolution, protection of property rights, investor protection, property registration, and insolvency resolution could significantly improve the country's competitiveness.
Business confidence in Costa Rica fell in the third quarter to levels reported in 2009, a year marked by the global financial crisis, and in consumer’s pessimism has also rebounded, because no effective and short-term measures are perceived that tend to reactivate the national economy.
Businessmen are not very optimistic about the development of their businesses in the coming months, as comparing today's Business Confidence Index (IEC) (5.3) with that of a year ago (6.2) shows a significant decline. In addition, this indicator accumulates 10 quarters of gradual slowdown, reported the Costa Rican Union of Chambers and Associations of Private Business Sector (UCCAEP).
In Costa Rica, the Central Bank predicted that confidence would again prevail among businessmen and consumers once the tax reform was approved, but that has not been the case.
In December 2018, after a year of proceedings in Congress and after having been reviewed in the constitutional instance, was approved by the Assembly of the country the file that corresponded to the Law of Strengthening Public Finances.
An improvement in the economy is anticipated in the coming months, and a larger number of analysts surveyed believe it appropriate to invest in the country.
From the Survey on Economic Expectations with a Panel of Private Analysts at the Banguat:
The conflict between the Salvadoran government and the Italian company Enel has deteriorated the business climate and the country's image as an investment destination.
"The unwillingness of the government to enforce arbitration awards," breach of these and "the politicization of the conflict Between El Salvador and the investor" are some factors that the Salvadoran Foundation for Economic and Social Development (Fusades) identifies as a major cause of the loss of confidence of foreign investors in El Salvador.
Smuggling and corruption at customs offices, crime, legal uncertainty, falling tax revenues and ongoing political conflict are not good for business.
An editorial in Prensalibre.com clearly reviews the reasons that "in just 20 months indicators relating to entrepreneurs confidence in investing have gone from 80.77 % to 36.11% ."
With no certainty there is no confidence, which is the main capital of an economy for attracting investments.
…because it may break. In Panama, political tensions and too much public spending designed to speed up development may compromise this brilliant moment for the canal country.
EDITORIAL
We have experienced the threat to businesses of political instability first hand several times.
FDI fell from $ 1.508 million in 2007 to $ 72 million in 2010. Businessmen claim the cause is the lack of confidence and certainty in current government economic policy.
2007: $ 1508 million, 2008: $ 784 million 2009: $ 431 million, 2010: $ 72 million. There should be a special consideration with the 2007 FDI numbers since they were affected by exceptional events such as the sale of banks to multinational banking corporations.
The country's businessmen have asked the Porfirio Lobo government for transparency and clear rules to guarantee investments.
During a meeting held with the president, business representatives formed a committee, coordinated by ex president Ricardo Maduro Joest, that will present its findings in the next few weeks.
According to the first quarterly survey of 2009 conducted by the Central Bank, 81.8% of respondents said that this is a bad time to invest.
The survey was conducted between January 28 and February 11 among consultants, entrepreneurs, and financial and stock analysts and showed a higher percentage than the 79.4% observed during the previous quarter.
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