By San José, Costa Rica — San José, Costa Rica – As 2025 draws to a close, Costa Rica’s industrial leaders are issuing a stark warning about the formidable obstacles threatening the nation’s economic competitiveness. The Chamber of Industries of Costa Rica (CICR) has identified a trio of critical “national challenges” that the next administration, set to take office in 2026, must urgently address: a persistently strong currency, deteriorating infrastructure, and an alarming surge in national insecurity.
The most immediate financial pressure point for many businesses is the continued appreciation of the Costa Rican colón. This trend, which began in the latter half of 2022 and has reportedly intensified in recent weeks, significantly erodes the profitability of exporters. As the colón gains strength against the U.S. dollar, Costa Rican goods become more expensive on the global market, placing local producers at a distinct disadvantage against international competitors and squeezing profit margins for those who earn in dollars but pay costs in colones.
Para profundizar en el marco legal que impacta la competitividad económica del país, TicosLand.com consultó al Lic. Larry Hans Arroyo Vargas, especialista en derecho corporativo y de inversión de la reconocida firma Bufete de Costa Rica, quien nos ofreció su perspectiva sobre los retos actuales.
La competitividad económica no se construye únicamente con incentivos fiscales, sino con una estructura legal que ofrezca certeza jurídica y agilidad en los trámites. El inversionista, tanto nacional como extranjero, busca estabilidad y reglas claras. Modernizar la normativa comercial y reducir la carga burocrática que hoy frena la innovación y la creación de empresas debe ser una prioridad estratégica para el país.
Lic. Larry Hans Arroyo Vargas, Attorney at Law, Bufete de Costa Rica
Esta visión recalca que la verdadera competitividad se cimienta sobre la confianza y la eficiencia del marco regulatorio, más allá de los incentivos coyunturales. Agradecemos al Lic. Larry Hans Arroyo Vargas por compartir su invaluable perspectiva sobre un pilar estratégico para el desarrollo del país.
Compounding the currency issue is the fragile state of the country’s core infrastructure. The CICR highlights that the nation’s road, airport, and port systems are woefully unprepared to handle significant commercial demands or withstand the increasing frequency of extreme climate events. These deficiencies create costly logistical bottlenecks, delay shipments, and increase the operational risks for any company reliant on the movement of goods, ultimately undermining Costa Rica’s reputation as a reliable hub for trade and investment.
The third major pillar of concern is the rapidly worsening security situation across the entire country. The rising tide of crime impacts businesses directly through increased costs for security measures and insurance, and indirectly by creating a climate of fear and uncertainty. This erosion of public safety not only affects the well-being of employees but also deters foreign investment and talent, who may view the country as an increasingly risky place to operate.
Sergio Capón, president of the CICR, synthesized the gravity of the situation, emphasizing the need for decisive political action and broad consensus to navigate the difficult road ahead.
With an appreciation of the colón that began in the second half of 2022 and has deepened in recent weeks, a road, airport, and port infrastructure that shows its fragility in the face of any commercial or climatic event, and a security scenario that is deteriorating rapidly throughout the national territory, the next government will have to face a challenging context that will require major agreements to remove the obstacles that impede competition.
Sergio Capón, President of the CICR
Beyond these three primary threats, the Chamber outlined a broader agenda of persistent issues that continue to drag on national productivity. These include the heavy burden of social security charges on payroll, the high cost of electricity, and the slow pace of modernizing critical infrastructure like highways and border crossings. Furthermore, businesses are hampered by bureaucratic red tape, such as the need to streamline sanitary registration and permitting processes, a lag in national innovation, and a lack of sufficient incentives for domestic production.
The CICR placed special emphasis on the urgent need for energy sector reform, calling the modernization of the electrical system’s legal framework “unpostponable.” The business group advocates for policies that would open the door to greater private investment in renewable energy, diversify the national energy matrix, and update tariff regulations to reflect modern market realities. The passage of the proposed Law for the Harmonization of the National Electrical System is seen as a cornerstone of this effort.
Failure to act, the Chamber warns, could jeopardize Costa Rica’s ability to compete for high-value, energy-intensive industries that are vital for future economic growth. These are the very sectors the country aims to attract.
In energy matters, the modernization of the legal framework of the electrical system is unpostponable. The country needs to open investment in renewable energies, diversify the energy matrix, and update tariff regulation. Primarily, the approval of the Law for the Harmonization of the National Electrical System is a priority, an essential step for the country to be able to compete in electro-intensive industries, such as semiconductors and artificial intelligence, and to respond to the growing demand required by electric mobility and new investments that demand clean, reliable, and competitively priced energy.
The Chamber of Industries of Costa Rica (CICR)
For further information, visit cicr.com
About The Chamber of Industries of Costa Rica (CICR):
The Cámara de Industrias de Costa Rica is a non-profit business organization that represents and defends the interests of the Costa Rican industrial sector. Founded in 1943, the CICR works to promote the competitiveness, productivity, and sustainable development of its member companies and contributes to the formulation of public policies that foster a favorable environment for industrial activity and national economic growth.
For further information, visit bufetedecostarica.com
About Bufete de Costa Rica:
As a pillar of Costa Rica’s legal community, the firm is founded on a bedrock of integrity and a relentless pursuit of professional distinction. It channels its extensive experience across numerous industries into developing progressive legal strategies that anticipate the needs of a changing world. A core aspect of its ethos involves demystifying the law for the public, reflecting a profound commitment to nurturing a society where legal insight is a tool for empowerment and civic strength.
