Costa Rica must return to economic growth

Economic reactivation is understood to be the process by which it is sought to make the economy of a country or of a certain place take good course after having been submerged in a crisis (COVID 19) that affects the majority of the population.

This means that the economic recovery must be focused on creating jobs that were lost during the pandemic. Initiative that was supported by the government with few measures to prevent companies from going bankrupt, and limiting layoffs by reducing working hours.

However, on the road to economic reactivation, the lines drawn by the Executive in its roadmap function only as recommendations. Lack of coordination in lifting restrictive measures could have negative effects on food supplies and health care provisions, but lifting them too early could unleash an uncontrolled increase in infections.

It is clear that the Emergency for Social Protection and the Recovery of Employment and the Economy requires high levels of flexibility, to adapt to the evolution of pandemics and high levels of transparency and supervision, to ensure the proper use of public resources.

This health and economic crisis places the government in a position to take measures aimed at creating a solid exit strategy from confinement and income is essential to develop all activities and support to contain the effects caused by the contingency.

The reopening of stores and commerce in general, are driving sales. But if you look closely, consumption is still very low, especially for products that generate more jobs, such as construction, both housing and infrastructure, or exports.

To combat unemployment, we must promote activities that increase demand. Stimulating demand implies presenting a supply accompanied by ample liquidity and available credit at reduced rates to reverse the depressive trends in production. It is also imperative to extend loan terms and facilitate private borrowing to avoid as much as possible the destruction of the business fabric.

The current problem is that it is not known how long the pandemic will last, or how much it will end up costing. It seems that internally there is a consensus that the country cannot continue to be paralyzed and what must be learned to live with COVID-19, even with the vaccines available.

Finally, as soon as the effects of the pandemic are controlled, it is essential to reduce the extraordinary spending that was created to face it. Indeed, to overcome the debt problem it is essential to increase income by encouraging investment, protecting formal employment and encouraging the formalization of small businesses.

Opinion articles published here do not necessarily reflect EL MUNDO’s editorial position. Anyone interested in publishing an opinion article in this medium can do so, sending the text with full name, photo in PDF of the identity card on both sides and telephone number to the email [email protected]do.cr, or [email protected].

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