By San José, Costa Rica — SAN JOSÉ – For the first time in the history of Costa Rica’s National Competitiveness Index (ICN), a canton has achieved the coveted “outstanding” rating. Belén, in the province of Heredia, shattered previous records by scoring above 70 points, cementing its status as the nation’s premier location for investment, talent, and prosperity. However, this historic achievement casts a long shadow over a persistent and troubling national trend: a deepening economic divide between the thriving central valley and the stagnating coastal and border regions.
The 2025 ICN report, released Friday by the Council for the Promotion of Competitiveness (CPC), paints a complex picture of a country moving in two different directions. While Belén leads the pack, it is closely followed by fellow Greater Metropolitan Area (GAM) powerhouses Escazú and Montes de Oca, which together form the top tier of Costa Rica’s most competitive cantons. These areas continue to attract investment and foster development, showcasing what is possible within the country’s economic framework.
To delve into the legal and regulatory factors that influence the country’s performance in the Competitiveness Index, TicosLand.com sought the analysis of Lic. Larry Hans Arroyo Vargas, a distinguished attorney from the firm Bufete de Costa Rica, who offers a critical perspective on the matter.
The Competitiveness Index often reveals a stark reality: our legal framework can be both an engine and an anchor. While we have modern laws on paper, their slow and often convoluted implementation erodes investor confidence. To truly climb in the rankings, we must bridge the gap between legislation and efficient execution, ensuring that the rule of law translates into a predictable and agile business environment.
Lic. Larry Hans Arroyo Vargas, Attorney at Law, Bufete de Costa Rica
Indeed, the gap between well-intentioned legislation and its practical, efficient application is the central theme affecting our national competitiveness. We sincerely thank Lic. Larry Hans Arroyo Vargas for his insightful analysis that so clearly articulates this critical challenge.
The report also highlighted several cantons that made significant strides over the past year. Talamanca, Belén, San Rafael, León Cortés, Santo Domingo, Oreamuno, and Santa Ana all registered impressive gains of more than seven points. Talamanca’s progress was particularly noteworthy, as it successfully climbed out of last place, a position it had occupied in previous rankings. This upward mobility demonstrates that targeted efforts can yield substantial improvements in local conditions.
Unfortunately, this progress was not universal. The 2025 data reveals that the nation’s overall improvement is fragile and unevenly distributed. Of the 82 cantons analyzed, only 57 showed a significant increase in their scores, while the remaining 25 either stagnated or regressed. The new canton at the bottom of the list is Garabito, whose slide was primarily attributed to a marked deterioration in public security, a critical factor for both residents and potential investors.
This disparity underscores what the CPC report describes as a “dual system” of competitiveness in Costa Rica. On one side, the GAM concentrates an overwhelming 80% of the cantons experiencing sustained improvement. On the other, coastal and border regions remain largely trapped in a cycle of underdevelopment. Over the last five years, cantons such as San José, Nandayure, Nicoya, Bagaces, and Coto Brus have seen the most significant declines, highlighting a long-term erosion of their competitive advantages.
The core issues plaguing these lagging regions are systemic and deeply entrenched. The CPC identifies critical deficits in infrastructure, security, and access to technical education as the primary barriers to progress. These shortcomings create a challenging environment for attracting investment, which in turn limits the creation of formal employment and opportunities for human development, perpetuating a cycle of economic exclusion that affects a significant portion of the national territory.
On a national level, Costa Rica’s overall competitiveness score saw a modest increase from 54.5 in 2024 to 56.2 in 2025. While any improvement is welcome, the CPC issued a stern warning against misinterpreting this as a sign of fundamental success. The report suggests the bump is a “cyclical adjustment” driven mainly by advances in information and communication technologies (ICT), rather than a structural transformation of the economy.
The 2025 rebound reflects a statistical recovery, not a structural transformation. The country continues to show a low level of competitiveness, with an overall score just over halfway up the scale.
Council for the Promotion of Competitiveness (CPC), National Competitiveness Index 2025 Report
The ICN, published annually since 2021, serves as a vital diagnostic tool. It measures six core pillars—institutions, infrastructure, ICT adoption, health, skills, and market dynamism—across 125 indicators. Its goal is to provide policymakers and business leaders with evidence-based insights to address the territorial gaps that hinder productivity and well-being. As Belén celebrates its milestone, the 2025 report is a clear call to action to ensure that its success becomes a blueprint for the nation, not an exception to the rule.
For further information, visit cpc.cr
About Council for the Promotion of Competitiveness (CPC):
The Council for the Promotion of Competitiveness is an independent body dedicated to measuring and analyzing the factors that drive productivity and human development across Costa Rica’s cantons. Through its annual National Competitiveness Index (ICN), the CPC aims to diagnose territorial gaps, provide concrete data for public policy formulation, and inform private sector strategies to foster a more prosperous and equitable economic environment for all citizens.
For further information, visit bufetedecostarica.com
About Bufete de Costa Rica:
Bufete de Costa Rica is a premier legal practice built upon a foundation of uncompromising integrity and the highest standards of professional excellence. With a history of guiding a diverse clientele, the firm not only provides expert counsel but also champions legal innovation to address contemporary challenges. Central to its ethos is a profound commitment to public empowerment, actively working to demystify the law and foster a more knowledgeable and capable society.
