Costa Rica Economy - 2022

GEOGRAPHICAL NAMES 

Economic overview

Since 2010, Costa Rica has enjoyed strong and stable economic growth - 3.8% in 2017. Exports of bananas, coffee, sugar, and beef are the backbone of its commodity exports. Various industrial and processed agricultural products have broadened exports in recent years, as have high value-added goods, including medical devices. Costa Rica's impressive biodiversity also makes it a key destination for ecotourism.

 

Foreign investors remain attracted by the country's political stability and relatively high education levels, as well as the incentives offered in the free-trade zones; Costa Rica has attracted one of the highest levels of foreign direct investment per capita in Latin America. The US-Central American-Dominican Republic Free Trade Agreement (CAFTA-DR), which became effective for Costa Rica in 2009, helped increase foreign direct investment in key sectors of the economy, including insurance and telecommunication. However, poor infrastructure, high energy costs, a complex bureaucracy, weak investor protection, and uncertainty of contract enforcement impede greater investment.

 

Costa Rica’s economy also faces challenges due to a rising fiscal deficit, rising public debt, and relatively low levels of domestic revenue. Poverty has remained around 20-25% for nearly 20 years, and the government’s strong social safety net has eroded due to increased constraints on its expenditures. Costa Rica’s credit rating was downgraded from stable to negative in 2015 and again in 2017, upping pressure on lending rates - which could hurt small business, on the budget deficit - which could hurt infrastructure development, and on the rate of return on investment - which could soften foreign direct investment (FDI). Unlike the rest of Central America, Costa Rica is not highly dependent on remittances - which represented just 1 % of GDP in 2016, but instead relies on FDI - which accounted for 5.1% of GDP.

Real GDP (purchasing power parity)

$100.25 billion (2020 est.)

$105.02 billion (2019 est.)

$102.79 billion (2018 est.)

note: data are in 2017 dollars

Real GDP growth rate

3.3% (2017 est.)

4.2% (2016 est.)

3.6% (2015 est.)

Real GDP per capita

$19,700 (2020 est.)

$20,800 (2019 est.)

$20,600 (2018 est.)

note: data are in 2017 dollars

GDP (official exchange rate)

$61.855 billion (2019 est.)

Inflation rate (consumer prices)

2% (2019 est.)

2.2% (2018 est.)

1.6% (2017 est.)

Credit ratings

Fitch rating: B (2020)

Moody's rating: B2 (2020)

Standard & Poors rating: B (2020)

note: The year refers to the year in which the current credit rating was first obtained.

GDP - composition, by sector of origin

agriculture: 5.5% (2017 est.)

industry: 20.6% (2017 est.)

services: 73.9% (2017 est.)

GDP - composition, by end use

household consumption: 64.2% (2017 est.)

government consumption: 17.3% (2017 est.)

investment in fixed capital: 17.1% (2017 est.)

investment in inventories: 1% (2017 est.)

exports of goods and services: 33.3% (2017 est.)

imports of goods and services: -32.9% (2017 est.)

Agricultural products

sugar cane, pineapples, bananas, milk, oil palm fruit, fruit, oranges, watermelons, cassava, rice

Industries

medical equipment, food processing, textiles and clothing, construction materials, fertilizer, plastic products

Industrial production growth rate

1.3% (2017 est.)

Labor force

1.843 million (2020 est.)

note: official estimate; excludes Nicaraguans living in Costa Rica

Labor force - by occupation

agriculture: 14%

industry: 22%

services: 64% (2006 est.)

Unemployment rate

8.1% (2017 est.)

9.5% (2016 est.)

Youth unemployment rate (ages 15-24)

total: 38.8%

male: 32.7%

female: 47.9% (2021 est.)

Population below poverty line

21% (2019 est.)

Gini Index coefficient - distribution of family income

48 (2018 est.)

49.2 (2013)

Household income or consumption by percentage share

lowest 10%: 1.5%

highest 10%: 36.9% (2014 est.)

Budget

revenues: 8.357 billion (2017 est.)

expenditures: 11.92 billion (2017 est.)

Budget surplus (+) or deficit (-)

-6.1% (of GDP) (2017 est.)

Public debt

48.9% of GDP (2017 est.)

44.9% of GDP (2016 est.)

Taxes and other revenues

14.3% (of GDP) (2017 est.)

Fiscal year

calendar year

Current account balance

-$1.692 billion (2017 est.)

-$1.326 billion (2016 est.)

Exports

$21.2 billion (2019 est.)

$20.53 billion (2018 est.)

note: Data are in current year dollars and do not include illicit exports or re-exports.

Exports - partners

United States 38%, Netherlands 6%, Belgium 5%, Guatemala 5%, Panama 5% (2019)

Exports - commodities

medical instruments, bananas, tropical fruits, orthopedic appliances, food preparations (2019)

Imports

$19.39 billion (2019 est.) note: data are in current year dollars

$19.64 billion (2018 est.) note: data are in current year dollars

Imports - partners

United States 41%, China 13%, Mexico 7% (2019)

Imports - commodities

refined petroleum, broadcasting equipment, cars, medical instruments, packaged medicines (2019)

Reserves of foreign exchange and gold

$7.15 billion (31 December 2017 est.)

$7.574 billion (31 December 2016 est.)

Debt - external

$29.589 billion (2019 est.)

$28.553 billion (2018 est.)

Exchange rates

Costa Rican colones (CRC) per US dollar -

573.5 (2017 est.)

544.74 (2016 est.)

544.74 (2015 est.)

534.57 (2014 est.)

538.32 (2013 est.)

NOTE: The information regarding Costa Rica on this page is re-published from the 2022 World Fact Book of the United States Central Intelligence Agency and other sources. No claims are made regarding the accuracy of Costa Rica 2022 information contained here. All suggestions for corrections of any errors about Costa Rica 2022 should be addressed to the CIA or the source cited on each page.