[Evangelism] Evangelism and Economic growing in costa rica

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amatierra

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Feb 18, 2013, 9:25:28 PM2/18/13
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A report released this week by the World Bank seems to suggest that expected
economic growth of around 4.8% for 2013, as forecast by the Costa Rican
Central Bank, is likely to be significantly less with the World Bank
suggested around 4%. While this is obviously a large reduction in forecast
growth for the current year we must set this against the worldwide economic
situation which is very difficult to say the least.

Economic growth of 4% will still put Costa Rica in the top three of the
fastest-growing countries in Latin America and will certainly do the country
no harm on the international trading stage. Indeed such has been the
investment interest in the region that the currency has been very strong for
some time, an issue which the Costa Rican government is currently tackling.

The currency issue

As more and more investment pours into Costa Rica it goes without saying
that this will push the currency higher and higher, making exporters less
competitive on the worldwide stage. This is an issue which the Costa Rica
government has identified at a relatively early stage and one which they are
currently addressing with a whole raft of new rules and regulations set to
be installed.

This is a very difficult situation if left to fester because ultimately the
only way to take the heat out of the currency is to increase base rates
which would then reduce consumer and business access to relatively cheap
credit, thereby stunting short-term economic growth. The government has
taken the option to leave interest rates aside for the moment and instead
use specific regulations to limit the amount of overseas investment in the
short to medium term.

Planning ahead

The very fact that the government has been very proactive rather than
reactive is something which continues to attract the attention of expats
around the world. Historically this has not always been the situation with
an array of Latin American countries on the verge of bankruptcy back in the
1990s. There has been a major sea-change within the political circles of the
likes of Costa Rica which has given the economy a new lease of life and
dramatically changed the country's prospects in the short, medium and longer
term.

There will always be issues with economies which are expanding at a
relatively high rate, there will always be challenges but ultimately if
these are the only challenges that the government is facing in the short to
medium term, there are many in Europe who would pay dearly for this
position!

Conclusion

While the effective reduction in forecast economic growth for Costa Rica in
2013 was significant, falling from 4.8% down to 4%, this must be considered
in light of the worldwide economic situation. Europe is struggling to pull
away from recession, North America is on the verge of another financial
crisis due to the US budget and overall the worldwide economy has not
recovered as many had expected. So, for Costa Rica to be in a position to
potentially deliver economic growth of 4% for 2013 this must be seen as a
phenomenal achievement for the authorities. It will obviously attract more
interest from overseas investors and we have seen a significant increase in
the number of expats moving to the region.

The trick now will be to continue this economic prosperity for the medium to
longer term and indeed to give expats and overseas businesses the confidence
to move to the country. This ongoing change in economic circumstances across
Latin America could be a game changer for Costa Rica in the longer term if
managed correctly.



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