Saturday 18 September 2021

Uncertainty Persists in Costa Rica, Even With Tax Reform

Rodrigo Cubero, president of the BCCR, acknowledged that the pessimism of consumers and businesses

Paying the bills

Latest

What are we celebrating?

QCOSTARICA - From the gallows humor department is the...

Sala IV rejects covid patient’s claim for Caja to pay the cost of a private hospital

QCOSTARICA - A claim made by a family against...

Finally, migrant population in Costa Rica will be vaccinated against covid-19

QCOSTARICA - After complaints raised by migrants because they...

Costa Rica is the Main Exporter of Palm Oil in 2020

QCOSTARICA - In 2020, Costa Rica was the largest...

Uruguay considers allowing tourists to buy marijuana

Q24N - The first country in the world to...

Today’s Vehicle Restriction September 18: “ODD” ending plates CANNOT circulate

QCOSTARICA - Starting today, September 18, we go back...

500 Intel drones illuminated the night of celebration of the Bicentennial of Costa Rica

QCOSTARICA - During the celebration of the Bicentennial of...
Paying the bills

Share

In Costa Rica, the Banco Central (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.

At the beginning of the year, the BCCR foresaw an increase in household consumption of 2.4% of GDP for 2019, but in the revision of its projections, in the middle of this year, it reduced it to 1.9%. Photo: Mayela López.

In December 2018, after a year of Legislative debates and after being reviewed by the Constitutional Court, the legislators approved the “Reforma Fiscal” (Tax Reform) the law of strengthening public finances.

- Advertisement -

With the approval, the uncertainty in the Costa Rican economy was expected to disappear, but according to the authorities’ pessimism is still present.

Rodrigo Cubero, president of the Central Bank of Costa Rica (BCCR), told Nacion.com that “… The Central Bank made an estimate of how the confidence of the financial and exchange markets was going to be transmitted and how it was going to be reflected in the confidence of consumers and businessmen, with the consequence of more consumption and investment, but that did not happen’.

Cubero added that “… What is contributing to the low level of confidence of consumers and businessmen is the uncertainty of how the (Ley de Fortalecimiento de las Finanzas Públicas) will affect their own finances, how it will hit me in my pocket. That question introduces uncertainty and generates less consumption.

For 2020, the Central Bank expects a production growth of 3%; but cut it to 2.6%.

Rodrigo Cubero, president of the BCCR, acknowledged that the pessimism of consumers and businesses

For the president of the Chamber of Commerce, Yolanda Fernandez, the sector she represents is concerned, since no clear policies are observed by the government. She added that “… We don’t see a firm step towards an economic reactivation. Nor a greater forcefulness in clear decisions on the part of the Executive Branch.

- Advertisement -

The businesswoman insisted that one of the biggest threats of trade is informality. She even said that in the center of San José, opened, a few blocks from the Ministerio de Hacienda (Ministry of Finance), a new supermarket that does not accept credit cards for purchases.

The representative of the Chamber stressed that clear actions are urgently needed against these types of establishments, since they threaten employment and formal businesses.

According to the Índice Global de Expectativas (Global Expectations Index), prepared by the University of Costa Rica (UCR), between the second and third quarters of the year reported a 9% decline, explained by a deterioration in the prospects of all productive sectors.

Consudmer confidence: 11.2% optimistic, 40.7% pessimistic, 48.1% ambivalent

- Advertisement -

The fall in the general optimism of the business sector originates in the weakening of the indexes of services, manufacturing, trade and construction and to a lesser extent, agriculture, explains the document.

- Advertisement -
Paying the bills
Ricohttp://www.theqmedia.com
"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.

Related Articles

Costa Ricans lose hope of a low dollar

QCOSTARICA - In December, Costa Ricans expected the dollar exchange rate...

TSE rules out political party donations in cryptocurrencies

QCOSTARICA - The Tribunal Supremo de Elecciones (TSE) - Supreme Elections...

Subscribe to our stories

To be updated with all the latest news, offers and special announcements.

Log In

Forgot password?

Forgot password?

Enter your account data and we will send you a link to reset your password.

Your password reset link appears to be invalid or expired.

Log in

Privacy Policy

Add to Collection

No Collections

Here you'll find all collections you've created before.