Davivienda president: Strong Colón hurts Costa Rica's competitiveness

The strengthening of the Costa Rican Colón is hindering the nation's competitiveness, according to Javier Suárez, president of Davivienda Group. In a recent interview with the newspaper 'La Nación,' Suárez elaborated on the significant impact the appreciating currency is having on the banking sector and the broader economy.

Suárez, whose group operates in Costa Rica through Banco Davivienda and Davibank, expressed concern that the robust performance of the Colón could make Costa Rican exports more expensive and less attractive on the international market. This dynamic can ultimately affect the country's ability to compete globally.

The discussion highlights a common economic challenge where a strong national currency, while beneficial for consumers importing goods, can pose difficulties for local industries and exporters. The banking sector, closely tied to economic activity, feels these effects directly through changes in trade flows and investment.