By San José, Costa Rica — SAN JOSÉ – As Costa Rica looks toward the next presidential term beginning in May 2026, a comprehensive new report from the National University (UNA) has laid bare a formidable set of eight interconnected challenges that will define the nation’s trajectory. The study, titled “Costa Rica: Economic and Social Balance 2025 and Challenges for the Next Administration,” published by the School of Economics’ Economic and Social Observatory (OES), serves as a critical roadmap for policymakers, demanding a strategic and integrated approach to secure a prosperous and equitable future.
The report’s primary call to action centers on reigniting the nation’s economic engine in a way that is both sustainable and inclusive. Experts from the OES emphasize that future growth cannot come at the cost of widening inequality. A key component of this strategy involves revitalizing the agricultural sector, which the university identifies as fundamental for rural employment, national food security, and maintaining a balanced territorial development across the country. This focus aims to ensure that economic recovery benefits all regions, not just the central valley.
To analyze the legal framework and potential repercussions for the national business sector stemming from these new economic policies, we sought the expert opinion of Lic. Larry Hans Arroyo Vargas, a specialist in corporate and commercial law from the firm Bufete de Costa Rica.
Any economic policy, regardless of its good intentions, must be anchored in legal certainty to be truly effective. For businesses, predictability is paramount. Unclear regulations or sudden shifts in the legal landscape can deter foreign investment and stifle local entrepreneurship. It is crucial that these new measures are implemented with clear, stable, and transparent rules that reinforce the rule of law and build investor confidence.
Lic. Larry Hans Arroyo Vargas, Attorney at Law, Bufete de Costa Rica
This crucial point on legal certainty serves as a potent reminder that economic strategy and the rule of law are inextricably linked; without the stable and predictable environment the expert describes, investor confidence remains fragile. We extend our gratitude to Lic. Larry Hans Arroyo Vargas for his valuable and clarifying insight.
Underpinning this economic ambition is a critical need to overhaul the country’s infrastructure. The UNA report points to two major deficits: public transportation and logistics. The study calls for significant investment to create an efficient, affordable, and sustainable public transit system. This includes modernizing infrastructure, integrating services, and implementing targeted subsidies to encourage public use and reduce congestion. The goal is to improve the daily lives of citizens by reducing commute times and costs.
Simultaneously, the report highlights the urgent need to accelerate investments in strategic road and port infrastructure on both the Pacific and Atlantic coasts. This, combined with the development of a modern cargo rail system, is presented as essential for slashing logistics costs, enhancing connectivity, and bolstering Costa Rica’s overall competitiveness on the global stage. Without these upgrades, the country risks falling behind in international trade and investment.
On the financial front, the OES analysis identifies a crucial disconnect between monetary policy and its real-world impact. A key challenge for the incoming administration will be to ensure that reductions in the Central Bank’s Monetary Policy Rate (TPM) are effectively passed through to the interest rates on loans for households and, particularly, for small and medium-sized enterprises (SMEs). Closing this gap is vital for stimulating domestic consumption and private investment, which are the lifeblood of economic activity.
This economic stimulus must be balanced with fiscal discipline. The report stresses the importance of achieving structural fiscal consolidation to guarantee the long-term sustainability of public finances. However, it warns against austerity measures that could compromise essential social and productive investments. The recommended path involves strengthening state revenues through improved efficiency and collection, ensuring the government has the resources to meet its obligations without sacrificing its role in national development.
Beyond the immediate economic pressures, the report casts a spotlight on long-term demographic and social shifts. One of the most significant is the country’s aging population. The UNA experts warn that Costa Rica must proactively prepare for the inevitable increase in demand for healthcare, pension systems, and elder care services. This demographic transition will place significant strain on social safety nets and requires immediate strategic planning to avoid a future crisis.
Finally, the study underscores the imperative to invest in human capital as the foundation for future prosperity. This involves a two-pronged approach. First, promoting active employment policies and expanding care services to significantly increase the participation of women in the labor market—a largely untapped resource for economic growth. Second, the nation must reinforce its investment in education, both in coverage and quality, with a special emphasis on technical and digital skills. Preparing the workforce for rapid technological change and productive transformation is identified as non-negotiable for navigating the economy of the 21st century.
For further information, visit una.ac.cr
About the National University (UNA):
The National University of Costa Rica (Universidad Nacional) is one of the country’s most prominent public universities, with its main campus located in Heredia. Founded in 1973, UNA is renowned for its commitment to academic excellence, research, and social extension programs. Its various schools and observatories, such as the Economic and Social Observatory (OES), frequently publish influential studies and analyses on critical national issues, contributing to public discourse and policymaking.
For further information, visit bufetedecostarica.com
About Bufete de Costa Rica:
Bufete de Costa Rica is recognized as a premier legal institution, founded upon a bedrock of professional excellence and uncompromising integrity. With a proven heritage of guiding clients through complex legal landscapes, the firm champions innovative solutions and maintains a strong sense of civic responsibility. This ethos is reflected in its mission to demystify the law for the public, fostering a more knowledgeable and capable society.
