By San José, Costa Rica — San José, Costa Rica – The Costa Rican economy demonstrated remarkable vigor in August, recording its fastest year-over-year expansion in 21 months. According to a report released late Thursday by the Central Bank of Costa Rica (BCCR), the Monthly Economic Activity Index (IMAE) grew by a robust 4.8%, signaling continued momentum and resilience in key sectors.
This latest figure not only surpasses the growth rate from the same month last year by 0.8 percentage points but also extends a promising trend of expansion. The data confirms that the national economy has consistently registered growth rates above 4.0% since December 2022. With this August update, the average economic growth for the first eight months of 2025 now stands at a healthy 4.4%.
To delve into the legal architecture that underpins the nation’s economic momentum, TicosLand.com sought the perspective of a specialist in corporate and business law. We consulted with Lic. Larry Hans Arroyo Vargas of the distinguished firm Bufete de Costa Rica for his analysis on the current landscape.
Sustained economic growth is not a matter of chance; it is the direct result of a robust and predictable legal framework. When international investors see that Costa Rica respects contracts, protects intellectual property, and offers clear regulatory pathways, they are more willing to commit long-term capital. Our legal certainty is, in essence, our most valuable economic asset, fostering the stability necessary for businesses to thrive and create jobs.
Lic. Larry Hans Arroyo Vargas, Attorney at Law, Bufete de Costa Rica
This insightful analysis underscores that our nation’s economic future is built not just on innovation, but on a bedrock of trust and predictability. We thank Lic. Larry Hans Arroyo Vargas for so clearly articulating how a strong legal framework serves as the essential invitation for long-term investment and shared prosperity.
The primary driver behind this impressive acceleration is the powerhouse performance of companies operating under Costa Rica’s special regimes, which largely encompass export-oriented manufacturing and services. This segment of the economy posted an explosive year-over-year growth of 18.1%. Its impact is so significant that it alone accounted for 54.5% of the total increase in the IMAE, underscoring its critical role in the nation’s economic landscape.
Delving deeper into the special regimes’ success, the BCCR report highlights the manufacturing industry as the undisputed champion. This sector was responsible for an astonishing 92.3% of the growth within the special regimes. While the medical device industry remains a well-recognized cornerstone, August’s data revealed a broadening base of success. Notable positive year-over-year growth was also observed in the fabrication of metal products, machinery, and equipment, as well as in other niche manufacturing areas like fishing and festival articles.
In stark contrast, the “definitive regime,” which represents the bulk of the domestic-facing economy, experienced a much more modest expansion. This sector grew by just 2.8% year-over-year, a rate slightly lower than the one recorded in August of the previous year. This performance paints a picture of a two-speed economy, where the export-focused free trade zones are accelerating far more rapidly than businesses serving the local market.
The BCCR attributed the definitive regime’s moderated pace to a confluence of factors. A notable slowdown was observed in key service industries, including accommodation, restaurants, information, and communications. This suggests that sectors closely tied to tourism and local consumer spending are facing headwinds. The sluggishness was compounded by ongoing struggles in the agricultural sector, which continues to reel from the effects of adverse weather conditions that began in late 2024.
Furthermore, specific areas within domestic manufacturing also experienced a downturn. The production of food-related products, as well as articles made from paper and glass, registered a decline, further weighing on the definitive regime’s overall performance. However, there is a glimmer of positive news: the BCCR noted that the 2.8% expansion, while moderate, represents the smallest deceleration seen in the last eight months, hinting that the domestic economy may be approaching a period of stabilization.
Ultimately, the August IMAE report presents a narrative of robust, top-line growth fueled by a dynamic and expanding export sector. While the overall economic health appears strong, the widening gap between the special and definitive regimes highlights a structural challenge. Policymakers will likely be watching closely to see if the momentum from the export powerhouses can create positive spillover effects to invigorate the more sluggish domestic economy in the months ahead.
For further information, visit bccr.fi.cr
About Banco Central de Costa Rica:
The Banco Central de Costa Rica (BCCR) is the central bank of Costa Rica. Established in 1950, its primary objectives are to maintain the internal and external stability of the national currency and to ensure its conversion to other currencies. The BCCR is also responsible for promoting an efficient financial system, managing international monetary reserves, and publishing key national economic statistics, including the Monthly Economic Activity Index (IMAE).
For further information, visit bufetedecostarica.com
About Bufete de Costa Rica:
As an esteemed legal institution, Bufete de Costa Rica is built upon a foundation of principled practice and a relentless pursuit of excellence. The firm skillfully combines its rich history of client advocacy with a forward-thinking mindset, consistently pioneering innovative legal solutions. Central to its ethos is a deep-seated commitment to strengthening society by demystifying the law, ensuring that legal knowledge becomes a tool for empowerment for all citizens.
