Costa Rica Economy - 2006

Economy - overview:
Costa Rica's basically stable economy depends on tourism, agriculture, and electronics exports. Poverty has been substantially reduced over the past 15 years, and a strong social safety net has been put into place. Foreign investors remain attracted by the country's political stability and high education levels, and tourism continues to bring in foreign exchange. Low prices for coffee and bananas have hurt the agricultural sector. The government continues to grapple with its large internal and external deficits and sizable internal debt. The reduction of inflation remains a difficult problem because of rises in the price of imports, labor market rigidities, and fiscal deficits. The country also needs to reform its tax system and its pattern of public expenditure. Costa Rica is the only signatory to the US-Central American Free Trade Agreement (CAFTA) that has not ratified it. CAFTA implementation would result in economic reforms and an improved investment climate.

GDP (purchasing power parity):
$40.44 billion (2005 est.)

GDP (official exchange rate):
$19.34 billion (2005 est.)

GDP - real growth rate:
3.3% (2005 est.)

GDP - per capita (PPP):
$10,100 (2005 est.)

GDP - composition by sector:
agriculture: 8.6%
industry: 28.3%
services: 63.1% (2005 est.)

Labor force:
1.82 million (2005 est.)

Labor force - by occupation:
agriculture: 20%
industry: 22%
services: 58% (1999 est.)

Unemployment rate:
6.6% (2005 est.)

Population below poverty line:
18% (2004 est.)

Household income or consumption by percentage share:
lowest 10%: 1.1%
highest 10%: 36.8% (2002)

Distribution of family income - Gini index:
46.5 (2000)

Inflation rate (consumer prices):
13.8% (2005 est.)

Investment (gross fixed):
18% of GDP (2005 est.)

Budget:
revenues: $2.722 billion
expenditures: $3.195 billion; including capital expenditures of $NA (2005 est.)

Public debt:
56.2% of GDP (2005 est.)

Agriculture - products:
coffee, pineapples, bananas, sugar, corn, rice, beans, potatoes; beef; timber

Industries:
microprocessors, food processing, textiles and clothing, construction materials, fertilizer, plastic products

Industrial production growth rate:
2.6% (2005 est.)

Electricity - production:
7.726 billion kWh (2003)

Electricity - consumption:
7.12 billion kWh (2003)

Electricity - exports:
115 million kWh (2003)

Electricity - imports:
50 million kWh (2003)

Oil - production:
0 bbl/day (2003)

Oil - consumption:
40,000 bbl/day (2003 est.)

Oil - exports:
NA bbl/day

Oil - imports:
NA bbl/day

Natural gas - production:
0 cu m (2003 est.)

Natural gas - consumption:
0 cu m (2003 est.)

Current account balance:
-$1.179 billion (2005 est.)

Exports:
$7.005 billion (2005 est.)

Exports - commodities:
coffee, bananas, sugar, pineapples; textiles, electronic components, medical equipment

Exports - partners:
US 46.9%, Netherlands 5.3%, Guatemala 4.4% (2004)

Imports:
$9.69 billion (2005 est.)

Imports - commodities:
raw materials, consumer goods, capital equipment, petroleum

Imports - partners:
US 46.1%, Japan 5.9%, Mexico 5.1%, Brazil 4.2% (2004)

Reserves of foreign exchange and gold:
$2.208 billion (2005 est.)

Debt - external:
$3.633 billion (30 June 2005 est.)

Currency (code):
Costa Rican colon (CRC)

Exchange rates:
Costa Rican colones per US dollar - 477.79 (2005), 437.91 (2004), 398.66 (2003), 359.82 (2002), 328.87 (2001)