It is extremely weird how Costa Rica has now reached the highest inflation rate in 10 years and yet people continue spending money like Costa Rica Waterfallcrazies. The Economy in Costa Rica shows to be getting worse and worse every year, yet people get LCD screens, gaming consoles, cars and spend more money than ever. Costa Rica people are maybe not aware of what recession means and may be making the worst mistake of their lives.

 

According to a report by the Statistics and Census Institute Prices surged 15.77% percent over the past 12 months, the highest year-over-year increase since 1998, yet salaries raises are definitely not a match in Costa Rica. Salaries of a college graduate in the base salary list hardly reach the price of a low class Costa Rica home rent also the prices in food and beverages (non-alcoholic) were raised by 27.7% and transportation has increased a total of 19%. If add these prices to the incredible prices in Costa Rica real estate, we can easily see how it has become impossible for hard working people to get by and how come all these people are spending all these money in appliances and cars?

 

I have made previous entries on how prices in real estate in Costa Rica are only affordable for foreigners who earn in US dollars or Euros, now it also appears that basic products and services are not affordable for people in Costa Rica either. What worries me is that this kind of “big spender” behavior turns the entire economy problem in Costa Rica in something like Argentina went through a few years ago when trading became their only way of affording their basic needs. Argentina economy managed to emerge from that terrible economic low, but can Costa Rica handle such a thing? Hopefully people in Costa Rica begin to realize how big the issue is and stop using their credit, so far home financing in Costa Rica was stopped until further notice, I wonder if regular credit can be put on hold as well.