Income inequality grew in Costa Rica during 2013, but not as much as in other nations. There are now about 100 individuals in Costa Rica whose net worth is more… Read more » Continue reading →
Income inequality grew in Costa Rica during 2013, but not as much as in other nations. There are now about 100 individuals in Costa Rica whose net worth is more than $30 million, up from 85 a year ago; however, the super-rich in this country are less than in any other Central American nation -including Nicaragua.
According to a recent article by Cesar Augusto Brenes Quiros of business weekly El Financiero, two recent studies on income and wealth management in Costa Rica indicate that inequality is expanding, but the wealthy nucleus is not expanding as much as in other Latin American countries such as Argentina and Panama. In Central America, Guatemala has the highest number of wealthy individuals with a net worth higher than $30 million: 245.
Research firm Wealth-X of Singapore observed that 90 of the 100 richest people in Costa Rica are men. They are typically involved in the financial services and fast-food dining sectors. These findings are mostly concentrated on holdings that are reported at a national level. In Costa Rica, income that is realized abroad is not taxable and thus is not subject to reporting, which could mean that there are more well-off individuals flying under the radar and living in the ritzy beach communities of Guanacaste and Jaco Beach.
Big Spenders in Costa Rica
Although income inequality across the country grew by more than 24.8 percent in 2013, this did not seem to stop Tico consumers from shopping to their hearts’ content. El Financiero cites statistics by credit card network Visa that shows cardholders in Costa Rica being way more profligate than last year.
Use of the Visa Infinite product, which boasts the most generous credit limits in Costa Rica, grew by 33 percent. Shopping with the next credit card down the line, the Visa Signature, increased by 47 percent. The middle-to-upper income classes in Costa Rica spend a lot more on retail shopping than they do on groceries, rent or travel. They seem to be a refined bunch: Emerging brands in Costa Rica in the last 12 months include Michael Kors, Carolina Herrera, Cortefiel, Audi, and Lexus. The latter luxury auto purveyor is set to open a major showroom, Torre Lexus, in the upscale (and secretive) Avenida Escazu next year. Audi, for its part, is expecting a 30 percent increase in sales next year.
Wealthy Ticos are getting finicky as well; according to Wealth-X, the nouveau-riche in Costa Rica are demanding improved shopping experiences that surpass expectations in terms of store design, ambiance scents, level of customer service, and general pampering. They are voting with their wallets and ready to spend more: Retail sales for the recent Black Friday event showed a 200 percent improvement over last year.