Economic growth and job creation will be affected next year due to the lack of consumer income, according to projections by economists. And that 2023 would be a complicated year due to the effects of a global recession, while family income will not be easily recovered after a vertiginous fall as a result of the dollar exchange rate, the increase in interest rates and the high cost of hydrocarbons.
War
In this sense, the war between Russia and Ukraine, the container crisis and the consequences of the pandemic, as well as a lower production of crude oil worldwide, will cause families to face a difficult economic situation and therefore, consumption will come down the pike.
Rise in interest rates
Another indicator that has been affecting purchasing power is the rise in interest rates, which means that Costa Ricans have to pay more for loans. “The fear of a global recession is still latent, but much will depend on the impact of the increase in the price of gas on the lives of European citizens, which continues to be a matter of concern, ahead of winter in the northern hemisphere. The loss of consumption capacity as a result of inflation and the consequent increase in interest rates could lead to a slowdown in global aggregate demand and a significant drop in world economic growth,” said Fernando Rodríguez, an economist at the National University.
Minimizing expenses, assessing debt consolidation, saving as much as possible and looking for extra income are some of the recommendations given by experts. “The loss of purchasing power of families during this year was almost 20%, due to the increase in the value of the basic food basket. This imposes obligations on families.
On the prioritization of expenses and places them in a complex situation, since many times they must decide between paying for daily living (food, transportation, clothing, renting a home) and not continuing to make investments that would have greater benefits in the long term, such as education, training, languages, among others”, assured Mónica Segnini, president of the Council for the Promotion of Competitiveness.
And it is that although inflation, the highest in the last 13 years, has possibly peaked and will not grow more in the rest of the year, it is unlikely that all the goods and services that increased in price will decrease as fast as they rose and this makes salary adjustment policies key to equalize the purchasing power of households, and in particular, the social assistance policies that were announced by President Rodrigo Chaves.
Unemployment
Unemployment stood at 11.8%, stagnating in the last period, people have had more problems finding work. “The profile of unemployed people continues to be a problem that affects women to a greater extent, because while male unemployment is below 10%, in the case of women it reaches 15%”, assured the economist Greivin Salazar, from the National University.
Increasing the educational level of the population, generating employment with a gender approach, valuing the 4-3 shift scheme and redoubling efforts to close the digital gap and safeguarding Fonatel’s resources are some of the recommendations.
