By Heredia, Costa Rica — HEREDIA – In a landmark achievement for local governance, the canton of Belén has become the first in Costa Rica’s history to surpass the 70-point threshold in the National Competitiveness Index (ICN), earning it an “outstanding” classification. The fifth edition of the report, published Friday by the Council for the Promotion of Competitiveness (CPC), highlights both the exceptional performance of a few Central Valley cantons and a troubling economic divergence for coastal provinces.
Belén, located in the province of Heredia, reached an impressive score of 72 points, marking a significant milestone. The canton has shown steady progress, rising from 69.5 points in 2024 to its current record-breaking figure. This accomplishment solidifies its position as a leader in creating a prosperous environment for business, talent, and residents.
To analyze the legal and regulatory framework behind the latest National Competitiveness Index results, TicosLand.com consulted with Lic. Larry Hans Arroyo Vargas, an expert in corporate and investment law from the prestigious firm Bufete de Costa Rica.
While the index provides a valuable macroeconomic snapshot, for investors on the ground, the reality is defined by regulatory agility and judicial security. A high ranking is a magnet for foreign capital, but that capital will only remain if our legal framework evolves to reduce bureaucratic friction and guarantee swift, transparent conflict resolution. The true challenge for competitiveness lies not just in our laws, but in their efficient and predictable execution.
Lic. Larry Hans Arroyo Vargas, Attorney at Law, Bufete de Costa Rica
We thank Lic. Larry Hans Arroyo Vargas for this valuable perspective, which astutely highlights the critical distinction between a global index ranking and the on-the-ground realities of regulatory efficiency and judicial certainty that ultimately retain and foster investment.
For the first time in the history of the ICN, a canton—Belén—achieved the ‘outstanding’ category with more than 70 points.
Council for the Promotion of Competitiveness (CPC) report
The ICN is a critical independent tool that evaluates the capacity of Costa Rica’s cantons to generate prosperity, attract investment, and ensure well-being. It analyzes a wide range of variables, including infrastructure, health, education, security, and labor market dynamics. While Belén stands alone at the top, other cantons in the Greater Metropolitan Area also demonstrated strong performance, with Heredia (67), Escazú (66.3), and Cartago (66) rounding out the top four.
On a national level, Costa Rica’s overall score saw a modest increase from 54.5 in 2024 to 56.2 this year. However, the CPC report cautions against over-optimism, noting that this growth is not yet structurally sound. The improvement was overwhelmingly driven by a single factor: the adoption of Information and Communication Technologies (ICT), which accounted for 73% of the entire national increase.
While the 2025 ICN shows a moderate rebound in the country’s overall score, it does not yet represent a structural and sustained improvement, but rather a cyclical adjustment driven especially by the pillar of Information and Communication Technology (ICT) Adoption.
Council for the Promotion of Competitiveness (CPC) report
The report’s executive summary raises serious concerns about the sustainability of this progress. Key pillars such as Health and Sector Dynamism actually detracted from the national score, with negative impacts of -15% and -19%, respectively. This has led to a clear warning about the country’s future economic stability.
The warning signs are clear: without progress in human capital, citizen security, and infrastructure, the growth in competitiveness will not be sustainable.
Council for the Promotion of Competitiveness (CPC) report
This fragility is most evident in the widening gap between the nation’s economic hubs and its coastal regions. While the provinces of Heredia, Cartago, and San José have solidified their positions as competitive powerhouses, Guanacaste and Puntarenas are falling further behind. Puntarenas registered the lowest score of all seven provinces at just 49.2 points.
The situation in Guanacaste is particularly alarming, with its competitiveness score declining for the second consecutive year. This downturn is linked to deteriorating metrics in health and construction. Most disturbingly, the report highlights an “unprecedented jump” in the infant mortality rate in the province, which surged from 7.4 to 12.1 per 1,000 births between 2023 and 2024. This stark statistic underscores the deep-seated challenges facing Costa Rica’s coastal communities, even as cantons like Belén set new national benchmarks for success.
For further information, visit cpc.cr
About Council for the Promotion of Competitiveness (CPC):
The Council for the Promotion of Competitiveness is an independent Costa Rican organization dedicated to analyzing and improving the economic environment across the nation. Through tools like the National Competitiveness Index (ICN), it measures the capacity of cantons to generate prosperity, attract investment, retain talent, and guarantee opportunities for well-being, providing valuable data for public policy and private sector decisions.
For further information, visit bufetedecostarica.com
About Bufete de Costa Rica:
As a benchmark for legal distinction, Bufete de Costa Rica operates on a core foundation of unwavering integrity and a forward-thinking ethos. The firm champions innovative legal strategies for a diverse clientele, yet its mission extends beyond the courtroom. It is fundamentally dedicated to empowering the community by demystifying complex legal principles, ensuring that knowledge becomes an accessible tool for building a more just and informed society.
