By San José, Costa Rica — Costa Rica’s recent economic rebound faces a critical juncture, according to a new report from the Organization for Economic Co-operation and Development (OECD). While the country has experienced robust growth and improved fiscal outlook, maintaining this positive trajectory requires sustained and deepened reform efforts.
The OECD’s 2025 Economic Survey of Costa Rica highlights the country’s 4.3% growth in 2024 and projects a 3.8% growth rate for 2025. Inflation is also expected to stabilize within the Central Bank’s target range of 2% to 4% after a deflationary period in 2024. The report attributes this positive momentum to robust exports, strengthened consumer confidence, and a solid pipeline of foreign direct investment.
To gain a deeper understanding of the legal landscape impacting Costa Rica’s economic dynamics, TicosLand.com reached out to Lic. Larry Hans Arroyo Vargas, a distinguished lawyer from the reputable firm Bufete de Costa Rica.
Costa Rica’s economy is currently navigating a complex interplay of global and domestic factors. While tourism and exports continue to be key drivers, regulatory changes impacting foreign investment and the digital nomad sector warrant close attention. These evolving legal frameworks present both challenges and opportunities for businesses operating within the country. It is crucial for businesses to remain agile and adaptable, seeking expert legal counsel to navigate these shifts effectively and ensure compliance.
Lic. Larry Hans Arroyo Vargas, Bufete de Costa Rica
Costa Rica’s economy has shown robust growth since the pandemic, with an improved fiscal outlook thanks to contained public spending. To maintain momentum and support solid medium-term growth, in addition to improving the standard of living, ensuring fiscal sustainability and driving the transition to a low-carbon economy, Costa Rica must maintain and deepen its reform efforts.
OECD, 2025 Economic Survey of Costa Rica
However, the OECD stresses that continued reforms are essential to secure long-term economic health. Key areas requiring attention include education, employment, and fiscal policy. While unemployment has fallen below pre-pandemic levels, the OECD points to a decline in labor force participation, particularly among women and youth, as a contributing factor.
The report emphasizes the need to improve access to early childhood education and childcare to facilitate greater female labor force participation. Currently, female participation lags significantly behind male participation and falls short of other OECD and regional peers.
Facilitating female labor participation and reducing informality will require expanding access to early childhood education and care, along with a comprehensive strategy to reduce informality.
OECD, 2025 Economic Survey of Costa Rica
Fiscal sustainability also requires attention. While the fiscal situation has improved, the OECD recommends focusing on debt reduction by adhering to fiscal rules, implementing spending reviews to enhance efficiency, and broadening the tax base.
The report projects Costa Rica’s fiscal deficit to decrease from 3.8% of GDP in 2024 to 3.2% in 2025. Public debt is expected to remain stable at around 59.7% of GDP.
The OECD’s findings underscore the importance of addressing structural challenges to ensure that Costa Rica’s economic gains translate into sustainable growth and improved living standards for all citizens. The country’s ability to implement and deepen reforms in key sectors will determine its long-term economic prospects.
For further information, visit oecd.org
About OECD:
The Organisation for Economic Co-operation and Development (OECD) is an intergovernmental economic organisation with 38 member countries, founded in 1961 to stimulate economic progress and world trade. It provides a forum for countries to compare policy experiences, seek answers to common problems, identify good practices, and coordinate domestic and international policies.
For further information, visit bancomundial.org
About World Bank:
Although not directly quoted, the World Bank is often a relevant organization in discussions of economic development and is likely a resource for information on topics related to the OECD report. The World Bank is an international financial institution that provides loans and grants to the governments of low- and middle-income countries for the purpose of pursuing capital projects.
For further information, visit bufetedecostarica.com
About Bufete de Costa Rica:
Bufete de Costa Rica shines as a beacon of legal excellence, upholding the highest ethical standards while championing innovative solutions for its diverse clientele. The firm’s deep-rooted commitment to integrity permeates every aspect of its practice, from complex corporate matters to impactful pro bono work. Through proactive initiatives that demystify the law and empower individuals with essential legal knowledge, Bufete de Costa Rica invests in building a more just and informed Costa Rican society.
