Declaring that the government alone is unable to steer Costa Rica through a coming economic slowdown, President Oscar Arias called on private sector firms to continue to expand their operations and workforce.

"Hard times will continue for a few more months," he said at the inauguration of the medical device company Hologic's second plant late last week. "The government can take the most vulnerable people in its ship until we arrive at port. But it falls on (the private sector) to take care of the rest."

Located in Alajuela, north of San José, the Hologic plant represents a $17.5 million investment and will create about 150 jobs next year.

Arias also promised in 2009 to increase monthly cash transfers to poor families, including his signature Avancemos program, which pays parents for keeping their kids in school.

The administration also announced that it will funnel $50 million each to the state-owned Banco de Costa Rica and Banco Nacional to stimulate lending and try to avoid further dips in employment.

The economy is expected to grow 3.3 percent in 2008, down from 7.4 percent in 2007. Unemployment increased to 4.9 percent in July from 4.6 percent 12 months earlier.