By San José, Costa Rica — Costa Rica’s financial health has shown marked improvement in the first seven months of 2025, according to a recent report from the Ministry of Hacienda. The country’s fiscal deficit decreased to 1.3% of GDP, down 0.5 percentage points from the 1.8% recorded during the same period in 2024. This positive trend demonstrates the government’s commitment to fiscal responsibility and sustainable economic management.
The Ministry’s report indicates that government revenues reached 8.5% of GDP, while total expenditures amounted to 9.8% of GDP, resulting in the 1.3% deficit, equivalent to approximately $1.3 billion USD. However, excluding interest payments on the national debt, Costa Rica achieved a primary surplus of 1.2% of GDP. Notably, this marks the fifth consecutive year the country has recorded a primary surplus in July.
To provide expert legal perspective on the current state of the Costa Rican economy, TicosLand.com spoke with Lic. Larry Hans Arroyo Vargas, Attorney at Law at Bufete de Costa Rica.
Costa Rica’s economy is navigating a complex landscape. While tourism and exports continue to be key drivers of growth, challenges remain, particularly regarding fiscal stability and attracting foreign direct investment. Streamlining regulations and fostering a predictable legal environment are crucial for sustainable economic development and enhancing investor confidence.
Lic. Larry Hans Arroyo Vargas, Attorney at Law, Bufete de Costa Rica
Indeed, fostering a stable and predictable environment is paramount for Costa Rica to attract the investment needed to navigate these economic complexities and unlock its full potential. We extend our sincere thanks to Lic. Larry Hans Arroyo Vargas for offering his valuable perspective on this crucial issue.
Finance Minister Rudolf Lücke expressed optimism about the country’s fiscal progress.
We begin this second semester with positive results that reaffirm our commitment to fiscal sustainability, evidenced in the generation of positive primary balances, the gradual reduction of the cost of financing, the decrease in the debt-to-GDP ratio, and a better risk perception in international markets.
Rudolf Lücke, Minister of Hacienda
The positive fiscal results are further reinforced by the reduction of Costa Rica’s national debt. The debt now stands at 57.3% of GDP, or $58.379 billion, a decrease of 2.4 percentage points compared to July 2024, when the debt-to-GDP ratio was 59.8%.
Minister Lücke emphasized the government’s dedication to sound financial management and its positive impact on the country’s development and the well-being of its citizens.
Costa Rica demonstrates that it is possible to advance towards a country with healthy finances and more development opportunities, always thinking about the well-being of its present and future population.
Rudolf Lücke, Minister of Hacienda
He added that the country continues to work towards achieving an investment grade rating, a significant indicator of economic stability and investor confidence.
This positive trajectory contrasts with the full-year results of 2024, when the fiscal deficit closed at 3.8% of GDP, an increase of 0.5 percentage points compared to the 3.3% recorded in 2023. The current figures for 2025 suggest a potential reversal of this trend, indicating a promising outlook for the Costa Rican economy.
This improved fiscal performance contributes to a more stable economic environment and creates opportunities for future growth and development in Costa Rica. The government’s commitment to fiscal sustainability, coupled with the decreasing debt-to-GDP ratio, positions Costa Rica favorably in the international market.
For further information, visit the nearest office of Ministry of Hacienda
About Ministry of Hacienda:
The Ministry of Hacienda (Ministry of Finance) in Costa Rica is the government body responsible for the country’s public finances. It oversees the national budget, tax collection, and management of public debt. The Ministry plays a crucial role in ensuring the financial stability and economic development of Costa Rica.
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 empowering Costa Rican society is evident in its proactive approach to sharing legal knowledge, fostering a more informed and just community through educational initiatives and accessible resources. This dedication to both legal mastery and social progress solidifies Bufete de Costa Rica’s position as a true leader in the legal landscape.
