Over the past three years, Costa Rica’s economy has continued to grow, outperforming previous expectations. In the last decade, the country’s economic growth averaged 3.4% and reached 5.1% in 2023 and 4.3% in 2024, according to the World Bank Group. 

Costa Rica’s labor market conditions have improved, with the unemployment rate dropping to 7.4%, per Global Finance. “Real incomes have risen, particularly in the private sector and among women, and formal employment has expanded,” the report reads. An increase in private consumption and investment drives Costa Rica’s financial resilience.

Regardless of recent developments, continued global economic uncertainty remains a threat to the economy. Reduced demand from key trading partners, lower Foreign Direct Investment (FDI) and tighter economic conditions are raising borrowing costs for both public and private sectors, according to a World Bank Group report. Meanwhile, tense international relations, trade policy disruptions and fluctuating oil prices continue to strain the Costa Rican economy. Given the uncertain political climate and exposure to natural disasters, the country remains vulnerable.

“Despite the geopolitical conflicts and the challenges arising from the slowdown in international economic activity, projections from international organizations and the Central Bank of Costa Rica (BCCR) indicate that the Costa Rican economy is on a path of moderate and stable growth over the next 12 months,” Costa Rica’s central bank Governor Róger Madrigal López told Global Finance.

Today, the Central American nation’s real gross domestic product (GDP) is projected to grow approximately 3.8%, fueled by increased domestic demand and improved export performance, per Global Finance. Inflationary pressures have all but subsided for Costa Rica and expected to return to the tolerance range of ±1% by mid 2026.

Fiscal consolidation for Costa Rica will continue, supported by spending controls, efficiency reforms and improved tax administration, the World Bank Group reports. “Additional reforms under discussion could further strengthen fiscal adjustment,” the report reads. “Public debt is considered sustainable, projected to decline to 58.2% of GDP by 2027, supported by ongoing fiscal consolidation and responsive policy measures.”

Costa Rican customers averaged 14 days beyond terms in October, according to FCIB’s Credit and Collections Survey. The majority of respondents reported that payment delays stayed the same at 75%, while only 25% noticed an increase. Payment delays were mostly attributed to billing disputes at 75%. Half of respondents cited cash flow issues, cultural norms and customs, supply chain or shipping issues, among other reasons as main contributors to delays in payment. “Costa Rica is a business-friendly country,” one survey respondent wrote. “It is good to ensure that all business terms are explicit and included in the respective legal documentation.”