Costa Rica Economic Outlook
Diverse and service-driven economy:
Costa Rica’s economy is one of the most stable in Central America, driven by a combination of tourism, high-tech manufacturing, and agriculture. The country is a leading exporter of medical devices and electronic components, benefiting from strong trade relationships with the United States and the European Union. Tourism remains a major economic pillar, with Costa Rica’s rich biodiversity and environmental policies attracting millions of visitors annually.
Investment and sustainability:Costa Rica has made substantial progress in attracting foreign direct investment, particularly in the high-tech and services sectors. Its relatively business-friendly climate, political stability, and strong education system have positioned it as a key player in the global supply chain for advanced manufacturing. Additionally, the country is a leader in renewable energy, with over 98% of its electricity coming from renewable sources.
Challenges:Despite its economic success, Costa Rica faces challenges such as high public debt, persistent fiscal deficits, and growing social inequality. The government has struggled to implement tax and pension reforms, leading to periodic fiscal crises. Additionally, high living costs and income disparities remain pressing issues, limiting inclusive economic growth.
Costa Rica economic outlook:Costa Rica’s economic prospects remain positive, with growth driven by exports, foreign investment, and tourism. However, addressing fiscal imbalances and improving infrastructure will be critical to sustaining long-term stability. Continued investment in education, innovation, and green energy will be essential for maintaining competitiveness in the global market.
Costa Rica's Macroeconomic Analysis:
Nominal GDP of USD 95.2 billion in 2024.
Nominal GDP of USD 95.2 billion in 2024.
Nominal GDP of USD 95.2 billion in 2024.
GDP per capita of USD 17,878 compared to the global average of USD 10,589.
GDP per capita of USD 17,878 compared to the global average of USD 10,589.
GDP per capita of USD 17,885 compared to the global average of USD 10,589.
Average real GDP growth of 3.5% over the last decade.
Average real GDP growth of 3.5% over the last decade.
Average real GDP growth of 3.5% over the last decade.
Sector Analysis
In 2022, services accounted for 68.0% of overall GDP, manufacturing 13.6%, other industrial activity 14.6%, and agriculture 3.8%. Looking at GDP by expenditure, private consumption accounted for 65.4% of GDP in 2023, government consumption 14.9%, fixed investment 15.4%, and net exports 4.3%.International trade
In 2022, manufactured products made up 61.4% of total merchandise exports, mineral fuels 0.0%, food 35.4%, ores and metals 1.5% and agricultural raw materials 1.5%, with other categories accounting for 0.2% of the total. In the same period, manufactured products made up 71.7% of total merchandise imports, mineral fuels 12.7%, food 12.5%, ores and metals 1.9% and agricultural raw materials 1.2%, with other goods accounting for 0.0% of the total. Total exports were worth USD 20.70 billion in 2024, while total imports were USD 23.20 billion.Main Economic Indicators
Economic growthThe economy recorded average annual growth of 3.5% in the decade to 2024. To read more about GDP growth in Costa Rica, go to our dedicated page.
Fiscal policy
Costa Rica's fiscal deficit averaged 5.3% of GDP in the decade to 2023. Find out more on our dedicated page.
Unemployment
The unemployment rate averaged 11.3% in the decade to 2024. For more information on Costa Rica's unemployment click here.
Inflation
Inflation averaged 2.0% in the decade to 2024. Go to our Costa Rica inflation page for extra insight.
Monetary Policy
Costa Rica's monetary policy rate ended 2024 at 4.00%, down from 5.25% a decade earlier. See our Costa Rica monetary policy page for additional details.
Exchange Rate
From end-2014 to end-2024 the colón strengthened by 6.2% vs the U.S. dollar. For more info on the colón, click here.
Economic situation in Costa Rica
Annual economic growth fell to the pre-Covid 10-year average of 3.8% in Q1, down from Q4’s 4.6%. Private consumption, public spending, fixed investment and exports of goods and services all rose at slower rates. Turning to the second quarter, our Consensus is for the economy to decelerate further, though early data paints a mixed picture. Economic activity rose at a milder pace in April vs Q1 due to softer momentum in the manufacturing sector and shrinking construction activity. That said, in April, goods exports rose at the fastest pace in nearly two years, and tourist arrivals increased for the first time since last August. In other news, in early June, the IMF approved a two-year USD 1.5 billion precautionary line of credit—a facility reserved for countries with robust policy frameworks—aimed at enhancing Costa Rica’s resilience to external shocks.Costa Rica Economic Forecasts
Projections out to 2034.49 indicators covered including both annual and quarterly frequencies.
Consensus Forecasts based on a panel of 22 expert analysts.
Want to get insight on the economic outlook for Costa Rica in the coming years? FocusEconomics collects projections out to 2034 on 49 economic indicators for Costa Rica from a panel of 22 analysts at the leading national, regional and global forecast institutions. These projections are then validated by our in-house team of economists and data analysts, and averaged to provide one Consensus Forecast you can rely on for each indicator. This means you avoid the risk of relying on out of date, biased or outlier forecasts. Our Consensus Forecasts can be visualized in whichever way best suits your needs, including via interactive online dashboards , direct data delivery and executive-style reports which combine analysts' projections with timely written analysis from our in-house team of economists on the latest developments in the Costa Rica economy. To download a sample report on the Costa Rica's economy, click here. To get in touch with our team for more information, fill in the form at the bottom of this page.