Ukraine crisis impacts Costa Rican exports

The crisis in Ukraine has big repercussions on the world economy and Costa Rica is no exception to this. Consequences of war would translate into lower exports, which could mainly affect Costa Rica and Panama, in the region. Costa Rican banana and pineapple exports are practically in jeopardy, due to a conflict that takes place almost 11,000 kilometers from Costa Rica.

According to Jaime García, economist and director of the Índice de Progreso Social  (IPS) Social Progress Index, at INCAE Business School, in the market of commodities or primary goods there has also been an alteration as a result of the crisis and the prices of energy have increased, metals, transportation and food.

“If the conflict continues, these markets are going to generate more inflationary pressures and effects on production chains worldwide, producing shortages of certain goods and a higher cost of living, especially for people with lower incomes,” the expert considers.