Economical overview
The pillars of the economy are electronics
exports, tourism and agriculture. For a long time, Costa
Rica was a marked agricultural economy, but with the
beginning of the 1960s, the state invested in
industrialization and the economy became increasingly
varied. During the 1990s, tourism passed through
agriculture as the main source of foreign exchange, and
electronic components went on bananas and coffee as the
most important export products.
Costa Rica has since the end of the 20th century
attracted foreign companies that benefit from the
relatively well-educated workforce and the so-called
free trade zones with favorable conditions (see also
Industry). When the textile industry and then the
high-tech industry were first promoted in the 1990s, the
inflow of foreign capital increased and the economy got
a huge boost.
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Major imports by Costa Rica, covering a full list of top products imported by the country and trade value for each product category.
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US microprocessor manufacturer Intel's investment in
Costa Rica was crucial. Intel established itself in
1997, giving a clear impression in the economy: exports
rose and growth increased. Many other high-tech
companies followed suit. Intel accounted for nearly 6
percent of the country's GDP and the microprocessors
produced for 20 percent of exports. When Intel closed
its manufacturing facility in Costa Rica in 2014, that
meant a major breakdown. However, the company remains in
the country with facilities for research, development
and service.
Varied exports
Electronic components and other industrial goods
dominate exports, with particularly strong demand for
microprocessors from China. Bananas, coffee, pineapples
and other fruits and nuts still form a substantial part
of exports. Imports largely consist of raw materials and
components for the manufacturing industry.
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Abbreviationfinder.org: Check this abbreviation website to find three letter ISO codes for all countries in the world, including CRI which represents the country of Costa Rica.
Goods imports are larger than exports. The negative
trade balance is offset to some extent by the extensive
tourism, but also the current account balance (which
includes service trade) is negative. Since the 1960s,
Costa Rica has been part of a Central American common
market. The country signed the DR-Cafta Free Trade
Agreement in 2004, with four other Central American
states as well as the United States and the Dominican
Republic. However, the agreement was very contentious
and caused a bitter domestic political conflict. It only
came into force in January 2009, following a referendum
and several legislative changes (see Modern History).
Costa Rica has bilateral agreements with several
other Latin American countries. In 2011, a free trade
agreement entered into force with China, which soon
became Costa Rica's second largest import country. China
has contributed both aid money and investments in, among
other things, infrastructure.
The United States is still by far the largest trading
partner. The exchange is also great with neighboring
countries in Central America and with EU countries.
Investment in ecotourism
In 2016, tourism was estimated to account for just
over 5 percent of GDP. Costa Rica is one of the world's
leading eco-tourist destinations. The country has a
varied nature with active volcanoes, rainforests, sandy
beaches and a huge variety of animal and plant species
(see Geography and climate). There is a well-developed
system of national parks that contribute to easily
accessible nature experiences. Political stability and
relatively low crime make their efforts to attract
visitors. The tourism sector has not least created many
new jobs. The large number of tourists also causes
problems, as fragile nature is subject to wear and tear
and some sex tourism has arisen.
Growth has generally been good during the 2000s,
thanks to robust domestic demand, increased tourism and
a strong manufacturing industry.
Large budget deficit
However, a major problem is the budget deficit, which
at the end of 2018 was 6 percent of GDP. All governments
since the turn of the millennium have had tax increases
and other measures on the agenda to deal with the
deficit, but have largely failed because of lack of
support in Parliament.
Costa Rica has previously served as a tax haven for
foreigners. The European Cooperation Organization OECD
removed the country from its "black list" in 2009 and
from the "gray list" in 2011. Costa Rica had then signed
several tax information exchanges with other states. In
2013, the country also signed such an agreement with the
United States.
FACTS - FINANCE
GDP per person
US $ 12,027 (2018)
Total GDP
US $ 60,126 million (2018)
GDP growth
2.7 percent (2018)
Agriculture's share of GDP
4.6 percent (2018)
Manufacturing industry's share of GDP
11.9 percent (2018)
The service sector's share of GDP
68.3 percent (2018)
Inflation
2.7 percent (2019)
Government debt's share of GDP
53.5 percent (2018)
External debt
US $ 25,615 million (2017)
Currency
Colon
Merchandise exports
US $ 11,477 million (2018)
Imports
US $ 15,874 million (2018)
Current account
- US $ 1,877 million (2018)
Commodity trade's share of GDP
46 percent (2018)
Main export goods
electronics, bananas, pineapple
Largest trading partner
USA, China
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