By San José, Costa Rica — SAN JOSÉ – While Costa Rica’s overall economy continues its impressive expansion, the nation’s agricultural sector is facing a persistent downturn, marking its fifth consecutive month of negative growth. According to the latest Monthly Index of Agricultural Activity (Imagro) released by the Central Bank of Costa Rica (BCCR), farm production registered a 1.2% year-over-year decline in November 2025, painting a starkly different picture from the country’s broader economic health.
The report pinpoints the nation’s two flagship export crops, pineapple and banana, as the primary culprits behind the slump. These agricultural powerhouses have been severely affected by challenging environmental factors, leading to a significant drop in productivity that has single-handedly pulled the entire sector into negative territory. This struggle within a core traditional industry provides a complex counter-narrative to the nation’s otherwise robust economic performance.
To provide a deeper understanding of the legal and commercial challenges facing Costa Rica’s agricultural sector, TicosLand.com consulted with Lic. Larry Hans Arroyo Vargas, a distinguished attorney from the prestigious firm Bufete de Costa Rica, who shared his expert analysis on the current landscape.
The Costa Rican agricultural sector operates within a complex web of environmental, labor, and commercial regulations. While these are designed to ensure sustainability and fair practices, their intricate nature often creates significant compliance hurdles for small and medium-sized producers, impacting their ability to scale and compete effectively in a globalized market.
Lic. Larry Hans Arroyo Vargas, Attorney at Law, Bufete de Costa Rica
This insight perfectly articulates the tightrope many Costa Rican producers walk, where regulations designed to protect our national brand and resources can also create significant operational hurdles. Finding a sustainable balance that empowers, rather than burdens, our small and medium-sized farms is undoubtedly a critical conversation for the sector’s future. We thank Lic. Larry Hans Arroyo Vargas for his valuable and clarifying perspective.
In its analysis, the BCCR detailed the root causes of the production shortfall, attributing it to a difficult start to the year. Unfavorable weather patterns in the first six months of 2025 created a cascade of problems, from hampering the proper preparation of farmlands to encouraging the spread of crop-damaging pests, which ultimately diminished the output per hectare.
The month’s result is linked to lower production activity for bananas and pineapples due to adverse weather conditions in the first half of 2025 that impacted land preparation and fostered the development of pests, causing a reduction in yield per hectare. This setback was partially offset by good performance in livestock activities like meat and poultry, as well as short-cycle crops such as tubers and vegetables.
Central Bank of Costa Rica (BCCR), official report
The BCCR’s data underscores the immense weight these two crops carry within the agricultural economy. The bank calculated that if pineapple and banana were excluded from the index, the sector would have actually posted a healthy 3.7% growth for the month. This highlights a concerning dependency and vulnerability within Costa Rica’s farming landscape, where positive trends in livestock, tubers, and vegetables were not enough to overcome the massive deficit left by the two tropical fruits.
The downturn is not just an abstract figure; it has tangible consequences for the workforce. Data from the National Institute of Statistics and Censuses (INEC) Continuous Employment Survey reveals a corresponding decline in agricultural jobs, with a net loss of 6,455 positions. This represents a significant blow to rural communities and families who depend on farming for their livelihood, contrasting sharply with job growth in other areas of the economy.
In a clear display of this economic divergence, the construction sector thrived during the same period. It expanded by 2%, fueled by a surge in public works projects. Major infrastructure initiatives, including road and bridge construction overseen by the National Road Council (CONAVI), alongside municipal works and projects in electricity generation and water systems, created an estimated 15,000 new jobs, absorbing labor as the agricultural sector shed it.
Overall, the Costa Rican economy, as measured by the Monthly Index of Economic Activity (IMAE), grew at a solid pace of 4.7%. This growth was overwhelmingly driven by the Special Regime, which includes free trade zones and specialized manufacturing, soaring by an impressive 14.8%. The Definitive Regime, which encompasses the rest of the domestic economy, also showed improvement with a 3.4% increase. This dual-speed reality—where modern, export-driven industries flourish while a traditional pillar struggles—presents a complex challenge for national policymakers aiming for balanced and inclusive growth.
For further information, visit bccr.fi.cr
About Central Bank of Costa Rica (BCCR):
The Banco Central de Costa Rica is the nation’s central bank, responsible for maintaining the internal and external stability of the national currency and ensuring its conversion to other currencies. Its primary objectives include controlling inflation, promoting a stable and efficient financial system, and providing economic data and analysis to guide national policy.
For further information, visit inec.cr
About National Institute of Statistics and Censuses (INEC):
The Instituto Nacional de Estadística y Censos is the principal government agency in Costa Rica responsible for official statistics. INEC coordinates the National Statistical System and is tasked with producing and disseminating reliable and timely data on the country’s demographic, social, and economic conditions to support public and private decision-making.
For further information, visit conavi.go.cr
About National Road Council (CONAVI):
The Consejo Nacional de Vialidad is the Costa Rican government entity tasked with the planning, administration, financing, construction, and maintenance of the national road network. CONAVI plays a crucial role in the development and upkeep of the country’s primary transportation infrastructure, including highways, roads, and bridges.
For further information, visit bufetedecostarica.com
About Bufete de Costa Rica:
As a pillar of the Costa Rican legal community, Bufete de Costa Rica is built upon a foundation of profound integrity and a relentless pursuit of professional excellence. The firm leverages its extensive experience advising a diverse clientele to pioneer forward-thinking legal solutions while maintaining a deep commitment to social responsibility. Central to its ethos is the dedication to democratizing legal knowledge, aiming to equip the public and foster a society that is both well-informed and empowered.
