Weekly review

Record popularity

Halfway his second term as President of Costa Rica, and in comparison to the preceding four administrations, doctor Oscar Arias enjoys record support from the people, since 50 percent rank his performance as “good” to “very good”, while only 14 percent say it is “bad”. The positive perceptions increased from the 44 percent that had been recorded in August last year and improved even on the first few months in office, when they were 47 percent. In addition, the negative perceptions are at their lowest since Dr. Arias was sworn into office two years ago. These data was surfaced in the most recent UNIMER survey for the daily La Nación.

Confidence index peaks

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The confidence index –0.0 to 3.0 range– for the Government increased from 2.36 in August 2007 to 2.55 in March 2008, the highest point since January 2003. The index is the average of a general evaluation of the government based on the answer regarding whether or not it discriminates among sectors, it is efficient in public spending, its officials are honest, and it is able to solve the problems of the nation.

Public debt decreases

The public debt recorded a spectacular reduction over the last five years. It went from 60 percent of the Gross Domestic Product (GDP) in 2003 to 45 percent last year. To the International Monetary Fund, the dip was even larger, because it quotes 43 percent in 2007. In addition, its forecast for 2008 is 40 percent. The lower debt springs from a combination of factors, including production growth, lower interest rates, and restricted government spending. The impact of the lower public debt on the people is perceived in aspects such as lower interest rates on loans for housing, as well as on the Government’s ability to invest more on roads, schools, and hospitals. Overall, the image of a healthier economy furthers the attraction of foreign investment, analysts agree.

The road to China

Decoration plants and coffee lead the trade that Costa Rica activated upon establishing diplomatic ties with China and the opening of a Foreign Trade Promoter (PROCOMER in Spanish) office in the world’s most populated nation. Beijing, Canton, and Shanghai are the leading markets for those two “star” products, soon to be followed by pineapple and others, said Juan Martinez, PROCOMER’s man in the Chinese capital. He added that the office’s goal is not only promoting exports to China, but also acting as a gate to the India, Japan, and Southeast Asia markets for future expansion.

$2.1 billion in fuels

Costa Ricans are burning fuels at a $6-million daily rate, for an overall $2.1 billion at the end of the year, $600 million over the $1.5 billion forecast by the Costa Rican Oil Refinery (RECOPE in Spanish). In 2007, Costa Rica imported fuel for $1.4 billion, but the Refinery foresaw an average $80 per barrel for this year, not the around $100 current quote. RECOPE finance manager Carlos Quesada said that Costa Rica is not an oil country and is therefore subject to the pressures from the international prices of fuels, which in turn propel up the prices of other goods at the domestic level, a major factor for inflation. Because of these facts, the Central Bank’s 8 percent top inflation goal for this year is not likely to be attained. The Bank’s chief executive Francisco Gutierrez admitted that the price of oil is one of the major limiting factors in the control of inflation.

1,600 pounds of cocaine

The police confiscated 740 kilos (1,600 pounds) of cocaine a in van driven by a Costa Rican, 28, identified only by the family name Valverde. Law-enforcement agents chased Valverde on the road to Puntarenas. Apparently, the final destination of the drug –worth at least $4 million– was the United States and on at the Pacific Port of Puntarenas it would be loaded on a fishing boat, part of the network used by Colombian drug traffickers to reach North America.

$27-million condos in Osa

Local, U.S., and British investors launched a $27-million development in the Osa Peninsula, on the Costa Rican South Pacific. It will include 51 luxury condos, ranging from $500,000 to $1.5 million each. Joseph Flores, who chairs the firm, said that the development is friendly with the environment. He added that they plan to join forces with some 40 local firms to improve the area.