Despite public opinion polls showing an acceptable level of approval for President Luis Guillermo Solis during his first trimester in office, most people in Costa Rica are feeling the inflationary blues and do not think that the economic situation on a national and personal level will improve soon. According to a recent report in business daily La Republica, a recent survey conducted by the University of Costa Rica shows that consumer confidence in Costa Rica tumbled down by six points. Although history shows that consumer confidence tends to take a dip whenever a new administration takes over the Presidential Office in the Zapote suburb of eastern San Jose, six points is a major drop. When looking into the current drop in consumer confidence, it helps to remember that President Solis assumed the highest public office in Costa Rica at a time when the United States is recovering from the Great American Recession. Even the last two presidential terms, which unfolded during the Global Financial Crisis, did not suffer from this record-low economic sentiment.

Little Hope for the Economic Future

Although a major part of Tico idiosyncrasy is based on the principle of “things will get better tomorrow,” the current consumer sentiment does not reflect this. Future consumer confidence for the next twelve months dropped an astonishing 12 points. This means that most households and businesses in Costa Rica do not believe things will improve in the mid-term, which could signal a period of low spending. This is not good for the national economic sector since Costa Rica has been transitioning into a consumer economy during the 21^st century. One of the problems cited by an economist conducting the survey is that the administration of President Solis has not made any major announcements with regard to intervening in the rising fuel and electricity prices. Dependence on fossil fuels is a 21^st century phenomenon in Costa Rica as car culture grows, but most Ticos are not pleased with increases in their monthly power bills since more than 80 percent of electricity produced in this country does not come from oil or coal.