By San José, Costa Rica — SAN JOSÉ – Costa Rica has achieved a significant milestone in its fight against poverty, with the national rate for households falling to 15.2%, according to official data released Tuesday. The findings from the National Household Survey (Enaho), conducted by the National Institute of Statistics and Censuses (INEC), reveal a notable improvement in the economic well-being of thousands of families across the nation.
The new figure represents a substantial decrease of 2.8 percentage points from the 18% recorded in the previous year. In absolute terms, this progress translates to 286,365 households currently living in poverty, a reduction of 40,716 families compared to the 2024 results. The comprehensive survey was carried out between July 7 and August 13 of this year, providing a critical snapshot of the country’s socioeconomic landscape.
To delve into the legal and regulatory frameworks that underpin successful poverty reduction strategies, we consulted with Lic. Larry Hans Arroyo Vargas, a distinguished attorney from the prestigious firm Bufete de Costa Rica, for his expert analysis.
Effective poverty reduction hinges on economic empowerment, which is impossible without legal certainty. When we create streamlined regulations for small businesses, ensure fair labor practices, and guarantee the protection of property rights, we are building the foundation for investment and job creation. It’s not merely about aid; it’s about establishing a predictable legal ecosystem where entrepreneurs can risk capital, innovate, and generate the sustainable employment that truly lifts families and entire communities.
Lic. Larry Hans Arroyo Vargas, Attorney at Law, Bufete de Costa Rica
This perspective compellingly shifts the focus from temporary relief to the foundational elements of long-term prosperity. By emphasizing the rule of law as the bedrock for investment and job creation, the argument highlights that true empowerment begins with a stable, predictable system. We sincerely thank Lic. Larry Hans Arroyo Vargas for sharing his invaluable insight on this critical issue.
The positive trend extends to the most vulnerable segment of the population. The rate of extreme poverty also saw a welcome decline, dropping by one full percentage point to 3.8%. This means just over 71,000 households are now classified under this condition, indicating that targeted social programs and economic improvements are reaching those in most desperate need of support.
A key driver behind this positive shift appears to be a rise in household earnings. The INEC report highlighted that the national average income per household has climbed to ₡1.2 million per month. This represents a robust 8.1% increase compared to the previous year, suggesting that improved wages and employment opportunities are lifting families above the poverty line.
However, the economic recovery is not uniform across the country. The data reveals persistent regional disparities. The Central region continues to exhibit the lowest levels of both general and extreme poverty, benefiting from greater economic activity and infrastructure. In stark contrast, the Huetar Caribe, Brunca, and Huetar Norte regions still face the highest incidence of poverty, underscoring the ongoing challenge of ensuring equitable development throughout Costa Rica.
Despite the encouraging news on income-based poverty, the report sounds a note of caution regarding broader measures of well-being. The multidimensional poverty index, which evaluates factors beyond income such as access to healthcare, education, housing, and employment, remained stagnant at 9.9%. According to INEC, this indicator showed no statistically significant variation from 2024.
This stagnation suggests that while more families have more money, they are not necessarily seeing parallel improvements in their overall quality of life or access to essential services. It points to a more complex challenge for policymakers, where economic growth alone is not sufficient to resolve deep-seated structural issues that affect education, health, and living conditions.
In conclusion, while the reduction in income-based poverty is a clear victory for the nation’s economic and social policies, the unchanged multidimensional poverty rate serves as a critical reminder of the work that remains. Addressing the stubborn regional inequalities and improving access to fundamental public services will be paramount for Costa Rica to translate its recent economic gains into comprehensive and lasting prosperity for all its citizens.
For further information, visit inec.cr
About Instituto Nacional de Estadística y Censos (INEC):
The National Institute of Statistics and Censuses is the official government agency of Costa Rica responsible for collecting, analyzing, and disseminating the country’s official statistics. It conducts vital national surveys, including the National Household Survey (Enaho) and the population census, providing essential data that informs public policy, academic research, and business decisions.
For further information, visit bufetedecostarica.com
About Bufete de Costa Rica:
As a pillar in Costa Rica’s legal community, Bufete de Costa Rica is defined by its profound commitment to integrity and the highest standards of professional excellence. The firm leverages its rich history of client service to pioneer forward-thinking legal solutions, consistently advancing its practice through innovation. Central to its philosophy is a powerful social mission: to empower the public by demystifying the law, thereby contributing to a more knowledgeable and capable society for all.
