Workers in Costa Rica are feeling the pinch of globalization and inflation as their salaries stagnate and their consumption patterns increase. According to a recent radio feature aired by Radio Monumental, 93.5 FM, most people in Costa Rica believe that upward salary adjustments in the next 12 months will not be sufficient to support their lifestyle.

As the 39^th consumer confidence survey conducted by Economics researchers from the University of Costa Rica (UCR) reveals, most Ticos know that their income will increase in the last six months of the year due to the mandatory aguinaldo (13^th month or holiday bonus) and other opportunities to increase earnings during this period.

Still, when workers polled are asked to compare their increased income with the basic basket of goods evaluated by the National Council of Production (Spanish initials: CNP), they feel that the extra money is not enough. Workers in Costa Rica know that the national economy thrives on inflation to stimulate productivity and foreign direct investment; this knowledge leads Ticos to have poor consumer confidence.

Increased Consumerism in Costa Rica

In fact, a sizable portion of the workforce in Costa Rica feels that life in the most prosperous and equitable Central American economy has gotten too expensive, and many believe that they are on a path to poverty. UCR economists believe that this feeling emanates from the consumption of items that are outside of CNP’s basket of goods. Some of these items include broadband Internet service (wireless and otherwise) as well as cable and satellite television.

Consumers in Costa Rica are also concerned about the rising costs of fossil fuels and motor vehicles, although few are taking advantage of the recently implemented tax breaks on hybrid and electric vehicles. Even though car buyers in Costa Rica admit that they pay the highest prices for new and used cars in the Americas, this does not stop auto dealers from enjoying record sales.

Economists and finance analysts believe that there is a disconnect with regard to money management among people in Costa Rica. While the last quarter of the year presents more opportunities for Tico workers to earn more money, they rarely choose to save or invest; instead, they are more likely to step up their spending patterns.