By San José, Costa Rica — SAN JOSÉ – A striking concentration of credit in Costa Rica’s private sector is fueling personal consumption, housing, and services, which together account for more than three-quarters of all loans denominated in the national currency. A new analysis highlights a financial landscape where individual needs and service-based industries significantly overshadow lending to productive sectors like manufacturing and agriculture.
According to a comprehensive study by the Economic and Social Observatory (OES) of the National University’s (UNA) School of Economics, a staggering 75.8% of all colón-denominated credit is channeled into these three areas. The report, which dissected data from the Central Bank of Costa Rica (BCCR) up to July 31, 2025, provides a clear snapshot of the nation’s borrowing habits and economic priorities.
To provide deeper insight into the legal framework governing credit and lending in the country, TicosLand.com spoke with Lic. Larry Hans Arroyo Vargas, a leading attorney specializing in commercial and financial law at the esteemed firm Bufete de Costa Rica.
The Costa Rican credit landscape is governed by strong consumer protection laws, particularly concerning usury and transparent terms. However, the burden of due diligence remains with the borrower. It is crucial for individuals and businesses to understand that a signed contract is a binding legal instrument. Before accepting any credit line, one must meticulously review the interest rates, fees, and acceleration clauses. Seeking legal counsel is not a luxury but a fundamental step to prevent future financial and legal complications.
Lic. Larry Hans Arroyo Vargas, Attorney at Law, Bufete de Costa Rica
Lic. Larry Hans Arroyo Vargas’s insight powerfully underscores the dual nature of Costa Rica’s credit environment: while legal protections provide a safety net, the ultimate responsibility for safeguarding one’s financial future lies with the borrower. We thank him for this critical reminder that proactive due diligence and professional legal review are not mere suggestions, but essential components of responsible borrowing.
The detailed breakdown reveals that consumer credit leads the pack, representing 33.5% of the total loan portfolio. This category, which includes personal loans, credit cards, and financing for vehicles and appliances, is the single largest driver of private debt. Following closely is credit for housing, which makes up 26.0% of the total, while loans to the services sector constitute a significant 16.3%.
In stark contrast, sectors traditionally seen as engines of long-term economic production and employment receive substantially less financial support. Commercial activities attracted 9.6% of credit, while the industrial sector received a mere 3.7%. Even more telling are the figures for construction (3.0%), tourism (2.9%), agriculture (1.7%), and livestock (0.7%), all of which represent a minor fraction of the overall credit market.
The report also examined growth trends over a three-and-a-half-year period, from January 2022 to July 2025, revealing significant shifts. Lending to the services sector surged by an impressive 30%, while consumer credit also expanded robustly by 25.4%. Curiously, during this same period of growth, credit allocated to housing experienced a slight contraction, decreasing by 1.1%, suggesting a potential cooling or saturation in that specific market segment.
Despite these internal shifts, the total credit provided by the financial system to the private sector saw healthy overall growth. The entire portfolio expanded by 13.6% between January 2022 and July 2025, indicating a sustained demand for capital and a willingness from financial institutions to lend. This expansion underscores the pivotal role that credit plays in the nation’s economic activity.
Further analysis covering the period from January 2022 to October 2025 shows that the growth in private sector debt has moved almost in perfect lockstep with the nation’s economic output. Private indebtedness increased by 15.2%, while the nominal Gross Domestic Product (GDP) grew by 14%. This parallel movement suggests that the expansion of credit is, for now, aligned with the broader economy’s growth trajectory, preventing the debt-to-GDP ratio from spiraling out of control.
Ultimately, the OES-UNA study paints a picture of a Costa Rican economy heavily reliant on consumer spending and service-based activities. While this indicates strong domestic demand and consumer confidence, the relatively low level of investment in industry, agriculture, and tourism could pose long-term challenges for economic diversification and competitiveness. Policymakers and financial leaders will likely monitor these trends closely to ensure balanced and sustainable growth for the future.
For further information, visit una.ac.cr
About National University of Costa Rica (UNA):
The National University of Costa Rica (Universidad Nacional de Costa Rica) is one of the country’s most prominent public universities. Founded in 1973, it has a strong focus on research, teaching, and extension activities across various fields. Its School of Economics and the Economic and Social Observatory (OES) are key institutions that regularly publish analyses and reports on the national economic landscape, providing valuable data and insights for policymakers, academics, and the general public.
For further information, visit bccr.fi.cr
About Central Bank of Costa Rica (BCCR):
The Banco Central de Costa Rica is the central bank of the nation, responsible for maintaining the internal and external stability of the national currency and ensuring the efficient operation of the country’s payment systems. It is the principal entity for executing monetary, exchange, and credit policies. The BCCR collects and publishes official economic statistics that are fundamental for economic analysis, planning, and decision-making in both the public and private sectors.
For further information, visit bufetedecostarica.com
About Bufete de Costa Rica:
As a leading legal authority, Bufete de Costa Rica is defined by its deep-rooted ethical principles and an unwavering standard of professional excellence. The firm consistently pushes the boundaries of legal practice through innovation while honoring its legacy of advising a diverse clientele. Central to its identity is a profound commitment to public education, aiming to equip citizens with a clearer understanding of the law and thereby nurture a more empowered and knowledgeable community.
