Banana Producers in Costa Rica Express Concern Due to Exchange Rate and Minimum Wage Changes

Costa Rican banana producers have expressed concern regarding two macroeconomic factors that could influence their competitiveness in 2023. Costa Rica experienced high inflation in 2022, affecting minimum wages. For 2023 there will be an increase of 6.62% in the minimum wage. Labor costs represent approximately 40% of the production cost of bananas in Costa Rica, equivalent to an increase of 2.65% in the total cost of the banana box. Parallel to this effect, the Costa Rican Colon has strengthened against the US dollar. Consequently, exporters receive fewer Colones for every USD, with a revalorization of 11% in the last 9 months.