The country's exports are starting to show signs of recovery. In a six month period, which ended May this year, the country exported $4.881 million dollars, virtually the same as the exports recorded in the same period of 2015: $4.879 million dollars.
Thus, the country had no decrease in exports in these six months, a trend that could be noticed since November 2014.
Exports increased led by banana and pineapple, which have had a recovery after decreasing last year.
The sector had its biggest drop in the six months between April and September 2015, when they had 17% drop in sales, which totaled $4.867 million dollars, $982 million dollars less than in the six months that culminated in September 2014.
The findings are part of an analysis made by La Nacion based on data from the website of the Foreign Trade Promoter (PROCOMER).
The analysis was done using data from the first half of 2012 to last May. In total, they analyzed 36 periods.
Costa Rica's export sector is made up of 2,454 companies that together generate 419,000 jobs, according to information from Procomer up to 2014.
The effects of climate change
"Since we began working at the Ministry of Foreign Trade (Comex), we warned there would be a decrease after the departure of Intel, in October 2014. Intel's integrated circuits contributed about $1,600 million dollars annually. We thought it would take up to 14 months to compensate this loss, but it has taken us longer because of the effect that a prolonged El Niño had on agriculture. Last year, banana and pineapple production had a strong decrease," said Alexander Mora, Minister of Comex.
According to Mora, this led to a slow recovery of the export sector. According to forecasts, the country will export at least $10,800 million dollars in 2016, i.e. 12% more than last year.
If the forecasts are met, the country should increase its profits by $1,150 million dollars, as long as the departure of Britain from the European Union doesn't cause an economic recession in the European Union, the presidential election in the United States doesn't impact consumers, or the weather affects agriculture, said Mora.
However, this year's forecast is still $700 million dollars below the total amount reached in 2013: $11,500 million, the highest export revenues achieved by Costa Rica so far.
Leading exports
Costa Rica exports 2,270 domestic goods, 10 of which account for half of the export value (i.e. $2.462 million dollars between last December and May). Of these, bananas and pineapple dominate sales. In the semester that ended last May, banana exports amounted to $453 million dollars, 32 million more (+8%) than in the same period of 2015. Pineapple exports increased by 4%, and amounted to $427 million dollars.
However, juice and fruit concentrates had the best performance in terms of percentage growth, as their sales increased by almost 42% in the six months that ended in May ($118 million dollars).
Source: La Nación