Wednesday 17
September
2008, San José, Costa
Rica
Arias Opposition Tougher
Following His "Tired"
Comment
US Financial
Crisis Not All Bad For Costa Rica
ICE and Correos Join
Forces For A National
Address System
World Bank Approves
Disaster Funding For
Costa Rica
US Navy Seizes Cocaine
Sub Off Costa Rica
2,000 Jobs Available In
Guanacaste: Tourism,
Construction,
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US Financial Crisis Not
All Bad For Costa Rica
The financial crisis in
the United States is
sure to have
repercussions in Costa
Rica, especially with
the possible reduction
of foreign investment
from and a reduction of
exports to Costa Rica's
main buyer.
The bankruptcy of the
Lehman Brothers that
affected the major stock
exchanges around the
world is sure to be felt
in Costa Rica, according
to financial experts,
who expect an imminent
impact.
Financial institutions
are expected to be more
cautious with their
credit, meaning fewer
loans which will result
in reduced spending and
lower private
investments.
Costa Rican access to
international financing
will be more restrictive
and exports of goods and
services to the United
States will fall,
according to Costa Rican
economist, Alberto
Franco.
Franco explained that in
times of turmoil in
international financial
markets, foreign
investors prefer to put
their money in safer
things like US Treasury
Bonds and not invest in
emerging markets, such
as Costa Rica, which are
a greater risk.
On the other hand,
Franco explained, that
cooling of the economy
in the United States and
the cooling in some
European markets and
Japan has lowered the
price of raw materials
and the price of oil and
its effect on food
prices, which are all
good since Costa Rica is
a net importer of many
those goods.
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