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Published Thursday, May 9, 2019
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According to the businessmen, there are multiple deficiencies in the competitiveness issue.
A.M. Costa Rica wire services photo.




Chamber Union calls on government
to take action to reactivate economy

 


By the A.M. Costa Rica staff
 
For the business sector, it is urgent that the government of President Carlos Alvarado begin to set deadlines on the agenda of economic reactivation. Members of the sector think it is necessary to start generating employment and improve the living conditions of Costa Ricans.

This is the main call made by the productive sector, after the release of the Quarterly Business Survey known as "Pulso Empresarial" of 2019, a study that was made between April 1 and 12 involving 386 companies from all productive sectors.

According to the businessmen, there are multiple deficiencies in the competitiveness issue.  For example, on the question of whether they believe that an organized agenda exists between the government and the Legislative Assembly to improve the business climate, 47 percent of the industrialists said ‘no’ and only 44 percent said ‘yes.’

The attention to the business sector by the government is rated as ‘normal’ by 55 percent of the interviewees ‘good’ by 26 percent and ‘bad’ by 12 percent.

Sixty-two percent of entrepreneurs said this is not a good time to make investments in their company, 27 percent believe that it is a good time and 11 percent did not respond.

The representatives of the companies rated this a time to increase business as ‘normal’ 64 percent, ‘good’ 18 percent and ‘bad’ 14 percent.

"We should move forward with the speed in structural reforms that allow for economic confidence and dynamism,” said Gonzalo Delgado, president of Chamber Union, "Because today more than ever, it is urgent to generate jobs.”

Entrepreneurs were asked to give a grade of 1 to 10 to the Alvarado government and the Legislative Assembly. The grade for the government was 6.08, while the legislature received a grade of 5.67.

The performance of the Alvarado government obtained a low grade in several areas: fight against poverty, simplification of procedures and fight against corruption.

"After the approval of the fiscal plan, as well as the situation with the strike was solved last year, there are still pending issues such as improving infrastructure, combating poverty, reducing unemployment and fighting against corruption," said Delgado.

In general terms, both the perception and confidence of employers showed a significant decrease. When they were asked how they felt their business activity in January, February and March, the Perception Business Index was 4.9.

The survey was applied telephonically to 386 companies of diverse sectors, has a 95 percent confidence level and a 5 percent margin of sampling error. The interviews are of presidents, managers, financial managers or owners of the companies. The characteristic of the study is that of a statistical panel, that is, the same companies have always been consulted since 1996.





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What should the government do to increase economic activity in the country?  We would like to know your thoughts on this story. Send your comments to: news@amcostarica.com




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