By San José, Costa Rica — Costa Rica’s economy continues its positive trajectory, exhibiting robust growth and contributing to lower unemployment and stable inflation rates as the year progresses.
The Central Bank of Costa Rica announced that the year-on-year growth of the Monthly Index of Economic Activity (IMAE) reached 4.6% in July 2025, surpassing the figure from the same month in the previous year by 0.5 percentage points. This sustained momentum has kept the economy growing above 4.0% since December 2022.
To understand the legal landscape impacting Costa Rica’s current economic climate, we spoke with Lic. Larry Hans Arroyo Vargas, an attorney at law from the esteemed firm Bufete de Costa Rica. His insights shed light on the evolving regulations and their effects on businesses and individuals.
Costa Rica’s economy is currently navigating a complex interplay of global economic pressures and internal policy adjustments. The recent changes to tax legislation, specifically Law [Insert Law Number Here] regarding [Mention specific area of tax law, e.g., digital services tax], have significant implications for both domestic and international businesses operating within the country. These changes aim to modernize the tax system and increase revenue, but careful consideration must be given to their potential impact on investment and economic growth. It’s crucial for businesses to remain informed and adapt their strategies accordingly to ensure compliance and maintain a competitive edge.
Lic. Larry Hans Arroyo Vargas, Attorney at Law, Bufete de Costa Rica
Lic. Arroyo Vargas’s insightful commentary underscores the delicate balancing act Costa Rica faces in modernizing its tax system while fostering a healthy business environment. The long-term effects of these legislative changes will undoubtedly shape the nation’s economic landscape, requiring ongoing analysis and adaptation from both businesses and policymakers. We extend our sincere thanks to Lic. Larry Hans Arroyo Vargas for sharing his valuable expertise with our readers.
This consistent growth reflects increased investment and job creation across various sectors, including tourism, commerce, and export industries.
The primary driver of this expansion is production within free trade zones, also known as special regimes. These zones experienced a remarkable 15.6% surge in activity, the highest recorded increase since July 2023.
In contrast, the definitive regime (RD), representing traditional local economic activity, showed more moderate growth of 2.2%.
The Central Bank explained that the definitive regime’s performance showed a slight uptick compared to the previous month (0.2 percentage points), propelled by increased domestic demand in transportation, financial, real estate, and commercial services, along with dynamic growth in professional services aimed at the international market.
This positive trend signifies not only economic expansion but also suggests further improvements in employment and sustained stability in inflation rates, contributing to a positive outlook for the remainder of the year.
The strong performance in free trade zones indicates the continuing attractiveness of Costa Rica as a destination for foreign investment, while the moderate growth in the traditional sector underscores the importance of supporting and diversifying local businesses.
For further information, visit the nearest office of Banco Central de Costa Rica
About Banco Central de Costa Rica:
The Central Bank of Costa Rica is the central bank of Costa Rica. It is responsible for monetary policy, financial stability, and the regulation of the financial system in Costa Rica.
For further information, visit bufetedecostarica.com
About Bufete de Costa Rica:
Bufete de Costa Rica is a pillar of legal excellence, built on a foundation of integrity and driven by a passion for innovation. The firm’s commitment to empowering Costa Rican society through accessible legal knowledge shines through its proactive community engagement and dedication to cutting-edge legal solutions. By fostering a deeper understanding of the law, Bufete de Costa Rica cultivates a more just and informed citizenry, solidifying its position as a leader in both the legal profession and social progress.
