In the context of changing purchasing patterns, local consumer spending on clothing and shoes decreased by 44% and the budget allocated to telephone and Internet services increased by 52% compared to pre-pandemic levels.
The "2020 Current Events Survey", developed by the University of Costa Rica, collected information on the change in consumption patterns that arose from the coronavirus outbreak.
In recent decades, the behavior of consumer spending has varied in the country, and in 2018 food-related expenditures represented an average of 32% of total household expenditures, and expenditures associated with transport and communications represented 22%.
The National Institute of Statistics and Censuses presented the results of the 2018 National Household Income and Expenditure Survey, which specifies the main destinations of household spending in the country.
The slowdown in the region's economies and political uncertainty are changing the way consumers in markets such as Guatemala, Costa Rica and Honduras make purchasing decisions.
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.
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.
Despite growing by 3.39% year on year in April, ending the downward trend seen in the growth rate, the commercial sector reported a weakening of sales.
A report by the Bank of Guatemala notes that"...up to April 2016 economic activity, measured by estimating the IMAE, increased by 3.4% (3.0% in April 2015).This result was driven by the positive performance seen mainly in the following economic activities: Manufacturing Industries; Wholesale and Retail sales; Financial, intermediation, insurance and auxiliary activities; private services; Transport, storage and communications; and supply of electricity and water collection. "
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.
During the first quarter of 2013, public sector consumption increased by 7.6%, while the private sector reported a 9.7% rise.
In the public sector, growth represented a total of $1,558 million in expenses. In the private sector, the increase in consumption was due to the collection of taxes on transfer of property and services.
According to the Ministry of Economy and Finance, the rise in private consumption is due to increasing payrolls, as evidenced by a 17.4% increase in revenues from the payroll tax.
The proposal argues that, just as there are rules that help over-indebted companies, individuals must have a system allowing them to get out of financial insolvency.
The preliminary draft of the Family Insolvency Law for Latin America and the Caribbean will be studied from January by consumer associations and representatives from the commercial, banking and finance sector in Panama.