Friday 18 June 2021

Black Clouds For Costa Rica Industry

(QCOSTARICA) While PYMEs (Pequeña y Mediana Empresa) – Small and Medium Businesses – show some optimism, large industries in Costa Rica are more realistic and more cautious with their growth expectations.

From a statement issued by the Camara de Industrias de Costa Rica (CICR) –  Chamber of Industries of Costa Rica:

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Industrial companies are not any more optimistic than they were last year. This is the result of the study entitled “Business Outlook and competitiveness factors in the industrial sector, 2015” conducted annually by the Chamber of Industries of Costa Rica and presented today to the media.

Industrial respondents evaluated the previous year with a lower rating (6.9) than was expected (7.3) in terms of results.

It is expected that 2015 will close with a rating of 7.1, that is, they expect this year to obtain a lower rating than expected last year. Meanwhile, PYMEs are more optimistic about expectations, but they are also the companies whose results end up being lower than their expectations.

Large companies are more pessimistic than PYMEs in terms of profitability, production and employment generation.

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The results in terms of profitability show that from 2014 to 2013, 33% of industrial enterprises improved their profitability worsened by 23% and 44% was similar. In addition, by 2015, 40% of large companies expect their profitability is reduced (against 30% who expected to rise), which envisions a negative outlook for this variable for this year.

“It will be a year of increased generation of manufacturing jobs but stagnation or even reduction,” said Enrique Egloff, President of the CICR.

Factors affecting the competitiveness

The cost of electricity, social charges, competition from informal enterprises, taxes, exchange rates and paperwork and permits, are external factors that are affecting the competitiveness of industrial enterprises.

“As the Camada de Industrias reiterated what the government should take direct action in key industry development factors. For the CICR, the six primary areas to increase our competitiveness are related to: the reduction of electricity rates and fuel, the simplification of procedures for businesses, creating better conditions of infrastructure, better access to financing and the promotion productivity programs,” said Egloff.

“For the fifth consecutive year the cost of electricity is again the external factor affecting competitiveness,” said Egloff adding taxes that did not appear among the top 10 in last year’s survey now.

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“On the issue of taxes so there is harassment, ” said Egloff.

Survey methodology

  • 141 enterprises in the formal industrial sector (Inscribed on the CCSS)
  • There is a 95% confidence level represented in the results, with 3% sampling error
  • Companies  surveyed had 3 or more workers
  • Surveyed companies by size: Large 30%, Medium 46% and Small 24%
  • Survey was conducted between March 15 and May 22. 

Source: Centralamericandata.com

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FACT CHECK:
We strive for accuracy in its reports. But if you see something that doesn’t look right, send us an email. The Q reviews and updates its content regularly to ensure it’s accuracy.

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"Rico" is the crazy mind behind the Q media websites, a series of online magazines where everything is Q! In these times of new normal, stay at home. Stay safe. Stay healthy.

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