Economy of Costa Rica - statistics & facts
Costa Rica is often praised as a small but open economy in the heart of Central America. The economic growth and its relative peacefulness have created a positive spotlight for foreign investment and constant development. The country tribes with the agriculture and industry sectors, but services generate over 65 percent of the Gross Domestic Product (GDP), with commerce, finance, and tourism as the most grossing industries. Nevertheless, some problems remain unsolved such as high unemployment and young unemployment, over 40 percent of the employees working in the informal market, high poverty rates, and longtime inequality.
Almost one of every four people in Costa Rica currently live under the poverty line. From 2019 to 2022, the poverty rate increased heavily mainly due to the COVID-19 pandemic and the restrictions to control the spread of the virus. In rural areas, around 28.3 percent of the population lived under poverty conditions. Regionally, the country has a very positive outlook, experiencing a similar rate as Panama and a significantly lower rate than Honduras. Nonetheless, in 2021, Costa Rica became part of the Organization for Economic Cooperation and Development (OECD) countries and currently ranks as the OECD nation with the highest poverty rate.
Trade and economic growth
During the last few years, Costa Rica experienced an upward trend in the GDP going from 16.6 million USD in 2002 to 68.4 million USD in 2022, that is a 312 percent growth in the last 20 years. 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 2022, Costa Rica main exports ranged from medical equipment to food related products. The 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
As of June 2023, the highest Consumer Price Indexes in Costa Rica were food and transportation, both with price hikes of over 15 percent in a 12-month period. Nonetheless, with the monetary policy after the inflationary crisis in 2022, the Central American country registered decreases for four months in a row in the interannual underlying inflation rate in 2023. Still, Costa Rica ranked as the third country with the highest inflation rate in Central America, only behind Nicaragua and Honduras.Almost one of every four people in Costa Rica currently live under the poverty line. From 2019 to 2022, the poverty rate increased heavily mainly due to the COVID-19 pandemic and the restrictions to control the spread of the virus. In rural areas, around 28.3 percent of the population lived under poverty conditions. Regionally, the country has a very positive outlook, experiencing a similar rate as Panama and a significantly lower rate than Honduras. Nonetheless, in 2021, Costa Rica became part of the Organization for Economic Cooperation and Development (OECD) countries and currently ranks as the OECD nation with the highest poverty rate.
