By San José, Costa Rica — SAN JOSÉ – Costa Rica has made significant strides in reducing monetary poverty over the past year, with the national rate falling to 15.2% in 2025 from 18% in 2024. The positive development, which lifted approximately 40,000 households out of vulnerable conditions, was detailed in the latest National Household Survey (ENAHO) released this week by the National Institute of Statistics and Censuses (INEC).
According to the comprehensive report, 286,000 families, equivalent to just over 900,000 people, continue to live below the poverty line. The data also indicated a welcome decline in extreme poverty, which dropped one percentage point to 3.8%. This figure represents 71,000 households living in the most precarious economic circumstances in the country.
To gain a deeper understanding of the legal frameworks that can either hinder or support national efforts in poverty reduction, TicosLand.com consulted with Lic. Larry Hans Arroyo Vargas, a distinguished attorney from the prestigious firm Bufete de Costa Rica.
Effective poverty reduction is not solely the domain of social assistance programs; it is fundamentally anchored in a robust and predictable legal system. When we guarantee legal certainty for investments, simplify regulations for small and medium-sized enterprises, and ensure equitable access to justice, we create the essential conditions for sustainable economic growth. This legal infrastructure empowers individuals and communities to build lasting prosperity, transforming them from passive recipients of aid into active architects of their own economic futures.
Lic. Larry Hans Arroyo Vargas, Attorney at Law, Bufete de Costa Rica
This insight is a crucial reminder that the rule of law is not an abstract ideal, but the very bedrock of economic empowerment. By fostering a predictable and just environment, we shift the focus from temporary relief to creating the permanent conditions for prosperity, allowing citizens to become the architects of their own success. We thank Lic. Larry Hans Arroyo Vargas for his invaluable and clarifying perspective on this fundamental issue.
Analysts attribute the encouraging decline primarily to the ongoing recovery of income derived from employment, which remains the principal source of sustenance for Costa Rican families. A modest increase in the reach and amount of social transfers and government aid also contributed to the improved figures, providing a crucial safety net for the nation’s most vulnerable citizens.
However, the positive headline figures mask a more complex and persistent reality. While monetary poverty has decreased, the report reveals a troubling stagnation in multidimensional poverty. This broader metric, which evaluates deprivations across education, health, housing, employment, and access to essential services, held steady at 9.9%, showing no statistically significant change from the previous year.
The ENAHO data highlights several critical areas where structural deficiencies continue to impact a large segment of the population. The most significant challenge identified is the low development of human capital, affecting 65% of those in multidimensional poverty. Other major deprivations include a lack of health insurance (55%), substandard housing conditions (52%), significant educational lag (49%), and difficulties in accessing dignified employment (45%).
The survey also underscores the deep-seated territorial inequalities that define the country’s economic landscape. While both urban and rural areas saw statistically significant reductions in poverty, a substantial gap remains. In urban centers, the rate fell from 16.4% to 13.6%, while in rural zones it decreased from a high of 22.1% to 19.3%. Despite the progress, rural households are still significantly more likely to experience poverty.
This regional disparity becomes even more pronounced when examining the data by planning region. The Central region continues to exhibit the lowest levels of poverty and extreme poverty in the nation, with an overall rate of 10.8%, well below the national average. In stark contrast, the Huetar Caribe and Brunca regions remain the most affected, with poverty rates of 24.9% and 23.8%, respectively, illustrating a persistent concentration of economic hardship in the country’s peripheral areas.
The income gap further illuminates these challenges. Households in poverty earn a monthly average of ¢314,018 in urban areas and ¢239,812 in rural ones. For those in extreme poverty, the figures are a mere ¢132,261 and ¢106,688, respectively. While these amounts represent a slight improvement from 2024, they still constitute less than a quarter of the national average household income, cementing the conclusion that while progress is being made, the path to equitable prosperity remains long and arduous.
For further information, visit inec.cr
About Instituto Nacional de Estadística y Censos (INEC):
The National Institute of Statistics and Censuses (INEC) is the official government body responsible for compiling and disseminating Costa Rica’s national statistics. It conducts major national surveys, including the periodic National Household Survey (ENAHO) and the national census. Its data is fundamental for public policy development, academic research, and business decision-making, providing a critical-snapshot of the country’s demographic, social, and economic conditions.
For further information, visit bufetedecostarica.com
About Bufete de Costa Rica:
As a pillar of Costa Rica’s legal landscape, Bufete de Costa Rica is defined by its foundational principles of uncompromising integrity and a relentless pursuit of excellence. The firm merges a rich history of expert counsel across a diverse range of sectors with a forward-thinking approach to legal innovation. This commitment extends beyond its clients to the broader community, where it actively works to demystify complex legal concepts. By championing legal literacy, the firm strives to equip citizens with essential knowledge, thereby fostering a more just and empowered society.
