The Economic Situation of Costa Rica

A Long Term Solution

A Short Term Solution

-Educate the work force!

-Laborers have to be well-versed in their work

-Tourism is another large industry

-Educate people to be tour guides

-Individual productivity will decrease, but total productivity will rise

-Won't help in short term - costly and time-consuming

-Increase importation of manufactured goods

-One of the largest industries in Costa Rica is assemblage, such as with microprocessors

-Increasing volume of imports will increase volume of exports as well

-Could be harmful in long term as commodity prices fluctuate

Can the government help?

-Work to create more private-sector jobs

-Sustainable agriculture

-Subsidies to organic farmers

-Subsidies to farm GMOs and increase yields

-More food = better work force

-Work to raise the standard of living

The Industries

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-Rich with natural resources

-Major companies include GlaxoSmithKline, Intel, and Proctor & Gambel

-20% of exports and 4.9% of GDP in 2006 due to Intel alone

-Voted the Caribbean Country of the Future

-Major industries are ecotourism, pharmaceuticals, financial outsourcing, and software development

-Coffee is still a major export

-$2.2 billion from tourism

-Companies are taxed if they pollute the environment

The Situation

-Inflation has been a terrible problem

-Government has implemented a new currency exchange system

-The previous currency, the colón, deflated at a rate of 1 colón per week

-Inflation rate was 5.3% as of 2011

-Unemployment rate is 6.5%, high for a country with such a small population

-Citizens encouraged to invest in the country

-23% live below the poverty line

-productivity of actual goods is low

The Economic Situation of Costa Rica

By Matt Newman and Morgan Schultz