Jose Sanchez
Research expert covering society, economy, & politics for Latin America
Economy of Costa Rica - statistics & facts
Costa Rica is often praised as a small but open economy in the heart of Central America, in fact, it ranks as one of the highest growing countries in Latin America with a Gross Domestic Product (GDP) growth rate of 5.11 percent, around 76 percent higher than the economic growth of the United States. This favorable economic environment and its relative peacefulness have created a positive spotlight for foreign investment and constant development. Costa Rica thrives in agriculture and industry, but still services generate over 67 percent of the Gross Domestic Product (GDP), with commerce, finance, and tourism as the highest grossing industries. Nevertheless, some problems remain unsolved such as high unemployment and young unemployment, over 37 percent of employees working informally, high poverty rates, and longtime inequality.
Almost one of every six people in Costa Rica currently live under poverty conditions. During 2020, Costa Rica’s poverty rate increased heavily mainly due to the COVID-19 pandemic and several restrictions to control the spread of the virus, nonetheless, recent data suggest a full recovery by 2024.
Regionally, the country has a very positive economic outlook, experiencing some of the highest economic growth rates in Latin America. Nonetheless, some problems are left to be solved, like being the Organization for Economic Cooperation and Development (OECD) member with the highest poverty rate or the fifth Latin American country with the highest unemployment rate.
Trade and economic growth
During the last few years, Costa Rica experienced an upward trend in the GDP going from16.58 million USD in 2003 to 86.51 million USD in 2023 — a 400 percent growth in the last two decades. This economic growth was sustained by trade, investment, political stability, and fiscal discipline. As one of the success stories of the last decades, the Central American country started an integration process to the global economy. By 2023, Costa Rica's main exports ranged from medical equipment to food related products. Early investment and support of renewable energy sources, generating over 95 percent of the electricity production, also contributed to stablish Costa Rica as a green trade economy.Inflation and poverty
By mid-2024, the highest Consumer Price Indexes in Costa Rica were food and restaurants, both with price hikes of over 15 percent in a 12-month period. Moreover, the Central American country registered a constantly increasing interannual underlying inflation rate in 2024. Still, Costa Rica ranked as the third country with the lowest inflation rate in Central America.Almost one of every six people in Costa Rica currently live under poverty conditions. During 2020, Costa Rica’s poverty rate increased heavily mainly due to the COVID-19 pandemic and several restrictions to control the spread of the virus, nonetheless, recent data suggest a full recovery by 2024.
Regionally, the country has a very positive economic outlook, experiencing some of the highest economic growth rates in Latin America. Nonetheless, some problems are left to be solved, like being the Organization for Economic Cooperation and Development (OECD) member with the highest poverty rate or the fifth Latin American country with the highest unemployment rate.
