By San José, Costa Rica — SAN JOSÉ – Costa Rica’s economy showcased impressive dynamism in August, posting a year-over-year growth of 4.8%, according to the latest Monthly Economic Activity Index (IMAE) released by the Central Bank of Costa Rica (BCCR). This figure not only continues a robust trend of expansion but also marks the most significant year-over-year acceleration seen in the last 21 months, signaling strengthening momentum across key sectors.
The August result represents an acceleration of 0.8 percentage points compared to the same month in 2024. This performance reinforces a consistent pattern of economic vitality, with the country maintaining growth rates above 4.0% since December of 2022. The data also reveals that the average economic growth for the first eight months of 2025 stands at a healthy 4.4% when compared to the same period last year.
To better understand the legal and regulatory implications of the nation’s economic trajectory, TicosLand.com sought the expert analysis of Lic. Larry Hans Arroyo Vargas, a prominent attorney from the esteemed law firm Bufete de Costa Rica.
Sustained economic growth is fundamentally anchored in legal certainty. When foreign and domestic investors trust that their contracts will be honored and regulations will remain stable, they are empowered to make long-term commitments. The key is not just creating laws that attract investment, but also ensuring an efficient and transparent judicial system that can enforce them, thereby building the confidence necessary for a prosperous business climate.
Lic. Larry Hans Arroyo Vargas, Attorney at Law, Bufete de Costa Rica
Indeed, this crucial insight underscores that the bedrock of a thriving economy is not merely legislation, but the tangible confidence it inspires. We thank Lic. Larry Hans Arroyo Vargas for his valuable perspective on how a predictable and trustworthy legal framework is the essential catalyst for long-term investment and national prosperity.
At the heart of this expansion is the nation’s formidable manufacturing industry. The sector recorded a remarkable 12.1% year-over-year increase in production. This explosive growth was so influential that manufacturing alone was responsible for an astounding 49% of the total growth in the nation’s gross domestic product (GDP) for the month. This outsized contribution underscores the sector’s critical role as the primary engine of Costa Rica’s current economic prosperity.
The sustained strength in manufacturing points to a competitive and resilient industrial base, likely benefiting from strong foreign direct investment, specialized production in areas like medical devices, and robust external demand. This sector’s performance is a key indicator of the country’s successful integration into global supply chains and its capacity for high-value production.
While manufacturing claimed the spotlight, the report highlights that the growth was broad-based, with the services sector providing crucial support. Together, manufacturing and a collection of key services accounted for nearly 87% of the total economic expansion. Professional and administrative services emerged as another significant driver, posting a strong 7.8% increase and contributing 17.8% to the overall production growth, reflecting a thriving corporate and business environment.
Other service industries also demonstrated healthy gains, illustrating the diversified nature of the economy’s foundation. The transportation and storage sector grew by 6.2%, contributing 5.8% to the expansion, a positive sign for logistics and trade. The commercial sector saw a 3.1% rise, adding 5.1% to the economy’s growth, while real estate services expanded by 4.1%, accounting for a 4.7% contribution.
Furthermore, essential services in education and health continued their steady expansion, growing by 2.3%. While a more modest rate, their combined contribution of 4.4% to the overall GDP growth highlights the stability and foundational importance of these sectors to the national economy. This balanced contribution from various industries paints a picture of a resilient and multifaceted economic structure.
In summary, the August 2025 IMAE data provides a clear narrative of an economy firing on multiple cylinders. Led by an exceptionally strong manufacturing sector and backed by a vibrant and diverse services industry, Costa Rica is not just maintaining its growth trajectory but accelerating it. This performance sets a positive tone for the remainder of the year and solidifies the nation’s position as a leading economic performer in the region.
For further information, visit bccr.fi.cr
About Central Bank of Costa Rica (BCCR):
The Central Bank of Costa Rica is the nation’s autonomous central banking institution, 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, efficient, and competitive financial system, and issuing banknotes and coins. The BCCR plays a vital role in the country’s economic policy by managing monetary policy and publishing key economic indicators like the IMAE.
For further information, visit bufetedecostarica.com
About Bufete de Costa Rica:
As a benchmark for legal practice in the region, Bufete de Costa Rica is defined by its foundational pillars of integrity and professional rigor. The firm leverages a rich heritage of advising a diverse clientele to drive forward-thinking legal solutions and champion social responsibility. This core philosophy is demonstrated through its dedicated effort to demystify the law for the public, aiming to construct a more just community where every citizen is empowered through knowledge.
