"Periodo De Vacas Flacas"
According To Financial
Experts
How will the financial
crisis in the US affect
Costa Ricans? The simple
answer is that many
Costa Ricans, according
to a poll published by
the Spanish language
daily, Al Día, believe
that less Americans will
be visiting the country
in the foreseeable
future, which will mean
reduced jobs in the
tourism sector.
Asked the question, the
Secretary of the U.S.
Department of Commerce,
Carlos Gutierrez, who is
in Costa Rica leading a
group of US businessmen,
he said "what could
happen in the short or
medium term is a
shortage of capital, in
which case investors
will have to be much
more selective in
deciding where to
invest".
According to the latest
Índice de Confianza del
Consumidor (Consumer
Confidence Index), Costa
Ricans are expected to
think twice before
making a purchase,
especially in large
ticket items.
The reason is that many
Costa Ricans have become
distrustful of the
future and, therefore,
according to the study,
Costa Rican are expected
to analyze more where
they spend their money
during the next 12
months.
The poll was taken
between August 18 and 31
by the German company
GFK, a company with
expertise in market
studies, and revealed
yesterday by the Cámara
de Comercio.
GFK took in the response
of 803 people asking
them questions on home
economy, the economy of
the country and family
savings expectations for
the coming 12 months.
The poll reveals that
consumer confidence is
low, dropping to 65
points from the 98
points the same period
last year.
Gustavo Araya, manage of
GFK, said that there is
more consumer pessimism
for the coming 12
months, rising from the
wave of high and rising
consumer prices, the
devaluation of the colón
against the US dollar
and the delays in the
ratification of the free
trade deal with the US
and Central America.
The poll was taken
before the global
financial meltdown.
However, not all is doom
and gloom. According to
Óscar Cabada, president
of the Cámara de
Comercio, he expected
positive results for the
coming three months with
the Christmas and high
tourist season.
Financial experts say
that Costa Ricans have
to start thinking about
their home economics and
how to better manage
their personal finances,
especially being
cautious for the
Christmas shopping
season, which if
unchecked could mean
financial disaster.
Isaac Castro, head of
the Unidad de Riesgos de
Interbolsa, added that
the principal areas that
could be affected due to
the US financial crisis
is exports and call
centres located in Costa
Rica. "There exists the
threat of lost jobs in
the sector", said
Castro.
This is the "periodo de
vacas flacas" (lean
period), as financial
experts agree that this
is not the time to get
into credit card debt
and to take steps to
reduce spending,
choosing carefully on
what to spend money on
and what to put off
buying, becoming prudent
in their spending. |
