American Expatriate Costa Rica

Increased distrust on the direction of the economy

Uncertainty about the direction of the national economy was accentuated in the second half of the year. The situation causes a low level of consumer confidence at the end of this 2017.

This was revealed by the analysis of the Consumer Confidence Index (ICC), prepared by the Statistical School of the University of Costa Rica (UCR). The study evaluates the optimism of consumers towards the economic performance of the country.

Johnny Madrigal, researcher in charge of the Index, explained that the level of consumer confidence is low, around 40 points on a scale of 100, a rare situation for the month of November. Traditionally, positivism increases around this period, due to the proximity of the payment of bonuses, holidays and the festivities of Christmas and New Year.

Regarding the personal economic situation of the interviewees, the study revealed that 57% of consumers expect interest rates to rise in the next 12 months and a third believe that family income will fall.

The percentage of people who think it is difficult to find a job also increased, it went from 60.5% to 65.4%, and fewer consumers believe it is a good time to buy a vehicle or home.

There are also no good expectations about the behavior of prices: 74% expect a growth in the cost of fuel and 62% of the interviewees believe that the exchange rate will rise.

More than half of the interviewees (52.4%) believes that the government is doing a poor job in economic matters.

Madrigal pointed out that the constant warnings that are made about the difficult situation that the country is going through in fiscal matters and the case known as cementazo contribute to the bad image of the government’s work.

crhoy.com