Juli 2008: Nieuwsflits Costa Rica
From Handelswijzer Midden-Amerika van de Koninklijke Nederlandse Ambassade te Costa Rica
Panama most important trading partner in the CA region
Panama has become Costa Rica’s most important trading partner in the first half of this year. Traditionally Guatemala and Nicaragua are Costa Rica’s main markets. In the first half of 2008, Costa Rica exported US$210 mln of goods to Panama, up 34% on the same period of 2007. Panama buys a wide range of Costa Rican products; 482 Costa Rica companies sell over 1,500 different products to Panama. Costa Rican exporters say that they are benefiting from the economic boom in Panama. The main beneficiaries are construction companies and companies producing consumer goods. Exports of construction goods from Costa Rica to Panama were up by 79% compared with the same period of 2007, at US$43 mln. Consumer good sales were up by 16% at US$85 mln. Overall, exports of raw materials from Costa Rica to Panama were up by 50% at US$96 mln.
Dos Pinos Cooperative, plans an aggressive expansion drive in Guatemala, Nicaragua and Panama
Dos Pinos intends to take advantage of high powder milk prices, which are around $4,500 per tonne, up from $1,998 per tonne in January 2003. Dos Pinos has already invested $12.5 million in Guatemala, where it currently sells 80,000 litres of Costa Rican milk a day. The group now plans to strike deals with local producers. The cooperative recently acquired a 51% stake in a dairy plant owned by Cooprolac in Panama and aims to capture a 25% share of that country’s market by 2013. Dos Pinos’s investments in Panama are currently worth an estimated $2.5 million. Finally, the Costa Rican company has earmarked between $5 and $6 million for a new factory in Nicaragua. If Dos Pinos's investment drive goes as planned, the cooperative should achieve the largest distribution network in Central America, with over 26,000 businesses.
Service industry contributes to exports
The 61 international service companies operating in Costa Rica's Zona Francas ( free zones) will contribute some us$773 million – us$173 million more than in 2007– to overall exports, according to estimates from the Costa Rican Coalition for Development Initiatives (CINDE) based on data from the Central Bank. Exports of the sector have grown 30 percent since 2002 and now employ 20,000 people, from 2,900 at the start.
INS insurance monopoly ended
With the signature of Costa Rican president, Oscar Arias, the 84 year old insurance monopoly held by the Instituto Nacional de Seguros (INS), has ended, allowing Costa Ricans to make a choice once the competition enters the market. Regulations should be in place within 3 months opening the industry to national and international competition as long companies demonstrate to have at least USD$3 million of capital. With the stroke of his pen, Costa Rican president, Oscar Arias, with the president of the INS, Guillermo Constenla, at his side ends the 84 year insurance monopoly in Costa Rica.
Trade balance increases, despite export growth
Trade scales are tipping heavily toward imports, as Costa Rica's deficit increased almost 95 percent from the end of May 2007 to the same period this year, moving from $1.2 billion to $2.3 billion, according to the Central Bank. The imbalance comes even as exports have increased so far this year by 7.8 percent, close to $300 million, according to a Foreign Trade Ministry report. Costa Rica has exported roughly $4.2 billion worth of goods by the end of May. Agriculture sector saw a 9.5 percent gain. Pineapple exports increased by 23 percent. Typically strong, banana and melon exports sunk 3 percent and 18 percent from this time last year. Trade with the United States has decreased by 0.1 percent over the past year, despite that country's ailing economy.
Inflation during the last 12 months hits 12.82%
The Instituto Nacional de Estadística y Censos (INEC) - national statistics and census board - reported that the accumulated inflation for the last 12 months was 12.82%. The month with the highest inflation was last month, June, at 1.4%, placing the inflation for the first six months of the year at 6.55%. Francisco de Paula Gutiérrez, president of the Central Bank said that the high inflation rate is mainly due to the rising cost of crude oil and food, which could not have been foreseen. Food costs alone have increased 23.61% over the last year. What that means in real terms is that a family living on an income of ¢100.000 colones a year ago, today needs ¢123.610 colones to stay even, affecting mainly the poor, which are spending up to 45% of their income on food.
Tourism in Costa Rica Up 12.5%
During the first six months of the year, 1.03 million foreign visitors came to Costa Rica, for an increase of 12.5%, according to figures released by the Camara Nacional de Turismo de Costa Rica (Canatur). In real figures, the numbers represent an increase of 89.178 more tourists over the same period in 2007.
Global Crossing connects Costa Rica to Pan American Cable
Global Crossing has announced that a ceremony has been held in the Costa Rican city of Esterillos to celebrate the inauguration of a new submarine fiber-optic cable connecting the Pacific coast of Costa Rica to the Pan American Cable (PAC). The PAC connects the west coast of the US, Mexico, Panama, Venezuela and the Virgin Islands. The new submarine cable, constructed and operated by Global Crossing, will provide the state-run Costa Rican national telecoms incumbents Instituto Costarricense de Electricidad (ICE) and Radiografica Costarricense (RASCA) with increased international capacity and additional connection resilience. Global Crossing reports that the cable can support up to 60 million phone calls or 185 million e-mails per second.
Laureate Education Inc. (US) purchases prominent university
Laureate, who owns and operates online and overseas universities, acquired Universidad Latina, which serves more than 16,000 students. The school has 13 campuses throughout the country. The university offers undergraduate and graduate degrees in business, engineering, health sciences, architecture and graphic design.
Lehman to offer mortgages
Lehman Brothers Bank (US), a top-tier investment bank and market leader in mortgage and consumer loan securitization, has announced plans to finance mortgages for foreigners planning to call Costa Rica their new home. The bank is making history as it will be the first foreign bank in Costa Rica to provide home financing to non-residents. Operations started July 1, and will be open first to U.S. citizens.
