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Wednesday 29 October 2008, San José, Costa
Rica
Costa Rican Exports
Faring Well Amid
International Crisis
(Infocom) — Costa Rican
exports have so far
managed to avoid the
effects of the current
international economic
crisis that is
threatening to drive
even world powers such
as the United States
into a deep recession.
In fact, the past decade
has been one of growth
for the country’s
exporting industry, with
more than 250 companies
joining this robust
sector and 300 new
products being shipped
overseas.
One reason Costa Rica
has been able to endure
the fluctuations of the
global economy is the
increased
diversification of its
export portfolio, as it
has moved away from its
historical dependence on
a few, mostly
agricultural products,
as well as a limited
number of exporting
businesses and markets.
According to studies
done by the Costa Rican
Foreign Trade Promoter (Procomer)
using the Hirschmann
index (in which the
smaller numbers mean
less concentration),
Costa Rica’s export
product offerings have
gone from a 32.8 score
in 1999 to 9.9 in 2008.
A similar result was
seen in the case of
number of businesses
participating in the
export industry, with
the Hirschmann index
going from 34.4 in 1999
to 16.4 this year. A
larger diversity in the
number of countries
Costa Rica sells to was
also revealed by the
study, with the index
moving from 48.1 nine
years ago to 32.1 in
2008.
“These results show the
success achieved so far
by the exporting sector,
and at Procomer we will
continue working to
support the work of
local companies as they
search for new markets
or products to export,”
said Emmanuel Hess,
Procomer general
manager.
Despite the fact that
sugar exports have
fallen by 46.9 as of
September 2008 compared
with the same period
last year, some
sugar-based products
such as candy have done
very well during this
year.
Chewing gum, fruit
pulp-based snacks,
turron nougats and
mini-gelatin snack packs
are some of the products
included in the
non-cacao candy
category, which grew by
42.3 percent as of
September 2008 compared
with the same period
last year — reaching an
export value of $6.2
million.
The growth of this type
of products is explained
by the increase in their
sales to markets such as
Venezuela (the top
importer of these
sweets), the Dominican
Republic, Nicaragua and
Haiti, which have bought
30 percent more of these
products in 2008 than
during last year.
Total Costa Rican
exports as of September
of 2008 have grown by
5.5 percent compared
with the same period in
2007, reaching a value
of $7.3 billion — or
$385.6 million more.
Leading the list of top
performers this year are
the agricultural
products and the
livestock and fishing
industries, which
reported 12.1 percent
and 11.6 percent
increases in
international sales,
respectively. Sales of
meat and fish products
have posted significant
gains, particularly beef
(29.3 percent) and fish
fillets (23.7 percent).
Despite the severe
economic slowdown facing
the United States (still
Costa Rica’s No. 1
export market), sales to
that country grew by 1.8
percent in the
above-mentioned period,
pocketing exporters
$49.5 million more than
during January-September
of 2007. Products such
as computer components
(24.2 percent increase),
medical implants (up an
astounding 367.7
percent), tires (up 17.7
percent), and pineapples
(increase of 9.6
percent) have
counteracted the decline
in U.S. sales of items
such as infusion
equipment and
transfusion serum (down
5.6 percent), bananas (a
drop of 10.9 percent),
and textiles (-27.8
percent).
Foreign Trade Minister
Marco Vinicio Ruiz said
that while the
performance of the
exporting sector has
been good this year, he
believes that the
recently enacted free
trade deal with Panama
and the
soon-to-be-ratified
Central American Free
Trade Agreement (CAFTA)
with the United States
will help revitalize
Costa Rica’s economy and
development prospects.
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