Economy of Costa Rica
Overview
Costa Rica's basically stable economy depends on tourism, agriculture, and electronics exports.
Poverty has remained at roughly 20% for nearly 20 years, and the strong social safety net that had been put into place by the government has eroded due to increased financial constraints on government expenditures.
Immigration from Nicaragua has increasingly become a concern for the government. The estimated 300,000-500,000 Nicaraguans estimated to be in Costa Rica legally and illegally are an important source of (mostly unskilled) labor, but also place heavy demands on the social welfare system.
Foreign investors remain attracted by the country's political stability and high education levels, and tourism continues to bring in foreign exchange. The government continues to grapple with its large internal and external deficits and sizable internal debt. Reducing inflation remains a difficult problem because of rising import prices, labor market rigidities, and fiscal deficits. The country also needs to reform its tax system and its pattern of public expenditure.
The current administration has made it a priority to pass the necessary reforms to implement the US-Central American Free Trade Agreement (CAFTA). CAFTA implementation would result in an improved investment climate.
GDP
Real Growth Rate
8%
Per Capita
USD 12,500
From Agriculture
9%
From Industry
29%
From Services
62%
Labour Force
Available for Work
2
Working in Agriculture
20%
Working in Industry
22%
Working in Services
58%
Unemployment Rate
7%
Population Below Poverty Line
18%
Inflation Rate
12%
Investment as Percent of GDP
20%
Budget
Revenues
USD 3,129 (m)
Expenditures
USD 3,282 (m)
Public Debt
US$ 0.00 (m)
Agricultural Products
Bananas, pineapples, coffee, melons, ornamental plants, sugar, corn, rice, beans, potatoes, beef, timber.
Core Industries
Microprocessors, food processing, textiles and clothing, construction materials, fertilizer, plastic products.
Exports
Value
USD 8,238 (m)
Commodities
Bananas, pineapples, coffee, melons, ornamental plants, sugar; textiles, electronic components, medical equipment.
Partners
US 27.4%, Netherlands 12.2%, China 11.7%, UK 6.2%, Mexico 5.8% (2006)
Imports
Value
USD 10,840 (m)
Commodities
Raw materials, consumer goods, capital equipment, petroleum
Partners
US 41.2%, Venezuela 5.4%, Mexico 5.2%, Ireland 5%, Japan 4.9%, Brazil 4.3%, China 4.1% (2006)
External Debt
USD 6,332 (m)
Fiscal Year
Calendar year
