The Coronavirus lockdown has had a catastrophic impact on the Costa Rican Economy. Before Coronavirus Costa Rica already had an unemployment rate of 12.1% and a growing fiscal deficit that it tried to solve by creating more taxes. With the coronavirus lockdown that expected tax revenue will disappear and the unemployment rate continues to grow. What is the government doing to mitigate the effects on the Economy.
The Government announces a timeline to reopen the economy in four phases.
Phase I from May 16 -31
SPECIFIED NATIONAL PARKS will reopen at 50% capacity with previous purchase of tickets online.
BEACHES will be open Monday-Friday but only from 5:00 a.m. to 8:00 a.m.
RECREATIONAL SPORTS with no direct physical contact and high-performance contact sports without spectators will be allowed.
Food pickup at delivery window will now be available on weekends.
SMALL HOTELS with 20 rooms or less can open to 50% capacity.
Recreational physical activities are allowed
Phase II from June 1 -20
MORE NATIONAL PARKS will open at 50% capacity
RESTAURANTS can open with 50% capacity
MUSEUMS open for those with pre-purchases tickets and at 50% capacity
ALL HOTELS at 50% capacity.
Phase III June 21 – July 12
Stores can reopen at 50% capacity
Movies and Theaters can reopen at 50% capacity
Churches and places of worship can open up to a maximum of 100 persons and with social distancing in place6
Phase IV July 13- August 2
Classes will resume for grades 1-6
The BEACHES reopen
Contact and high performance sports events reopen with 20% capacity for spectators
What is the plan to reactivate the Economy ?
1. Announce the economic reopening schedule outlined above
2. Decree to the banks to make available low interest loans for working capital to the business sector.
3. Investment of 3.1 billion Colones in infrastructure construction
4. Support to the productive sectior of the economy.
i Improve technical training,
ii. allow flexible work schedules previously prohibited by the labor law
iii. reduce electric rates for commercial activities
iv. Improve 104 regulatory guidelines
v. Eliminate or consolidate the permitting requirements of 25 government institutions
5. Attract Investments to Costa Rica
i. Program to assist small business enterprises (PYMES)
ii. Create a digital services economy for PYMES
iii. Attract expats and Baby Boomers for retirement in Costa Rica
iv. Attract a Wellness and life sciences hub for Costa Rica
v. Approve the cultivation of Hemp and Medicinal Cannabis
6. Modernize Agricultura Practices with agro innovation and precision agriculture