By San José, Costa Rica — San José, Costa Rica – A new report reveals a moderate increase in Costa Rica’s national competitiveness score for 2025, a seemingly positive development that experts warn masks significant structural weaknesses and regressions in critical social areas. The nation’s overall score rose to 56.2 from 54.5 in 2024, but this progress is overwhelmingly propped up by a single sector, creating a precarious foundation for long-term growth.
The fifth edition of the National Competitiveness Index (ICN), an in-depth analysis by the Council for the Promotion of Competitiveness (CPC), concludes that the 1.7-point improvement is more of a conjunctural adjustment than a sustained, foundational enhancement. The ICN serves as an independent tool to measure the capacity of Costa Rica’s cantons to generate prosperity, attract investment, and ensure well-being for their citizens by evaluating six core pillars: institutions, infrastructure, ICT adoption, health, skills, and market dynamics.
To gain a deeper understanding of the legal and regulatory frameworks impacting Costa Rica’s national competitiveness, TicosLand.com consulted with Lic. Larry Hans Arroyo Vargas, a renowned attorney from the prestigious firm Bufete de Costa Rica. His analysis provides crucial insights into the challenges and opportunities facing the country.
A nation’s competitiveness is a direct reflection of its legal and administrative efficiency. To attract and retain significant investment, we must prioritize legal certainty and aggressively dismantle bureaucratic obstacles. A streamlined, predictable, and transparent regulatory environment is the fundamental pillar upon which sustainable economic growth is built.
Lic. Larry Hans Arroyo Vargas, Attorney at Law, Bufete de Costa Rica
This perspective correctly underscores that a nation’s economic appeal is built not merely on policy, but on the bedrock of legal certainty and administrative agility. We sincerely thank Lic. Larry Hans Arroyo Vargas for his invaluable contribution to this critical discussion.
According to the detailed findings, the gains are not only fragile but also unevenly distributed. The report explicitly cautions against misinterpreting the top-line number as a sign of broad-based success, highlighting a concerning trend where progress in one area is offset by decay in others.
The results of the ICN 2025 show an improvement compared to the previous year, but the progress is neither structural nor homogeneous.
National Competitiveness Index 2025, Council for the Promotion of Competitiveness
The engine behind nearly the entire national improvement is the Information and Communication Technologies (ICT) pillar, which scored an impressive 63.7. The CPC report calculates that a staggering 73% of the country’s total score increase is directly attributable to advancements in telecommunications, specifically the expansion of fixed internet access and enhanced mobile network quality. This reflects the continued maturation of the telecom market, which was liberalized in 2011 and surpassed 1.2 million fixed connections in 2024.
While the ICT progress is notable, it casts a long shadow over the performance of other essential pillars. Infrastructure registered a respectable score of 60.1, buoyed by high population access to basic services like potable water and electricity. However, the report notes significant disparities, with coastal cantons lagging far behind. The Skills and Competencies pillar scored 59.5, reflecting near-universal education coverage but also flagging major deficiencies in curriculum access and the low educational attainment of the adult population.
The most alarming findings lie in the pillars that are either stagnating or actively deteriorating. The Institutions (51.0), Health (52.2), and Market Dynamics (50.5) pillars received the lowest scores. The CPC attributes these poor results to a combination of factors, including ineffective local government management, a high level of citizen insecurity, deteriorating health indicators, and the heavy concentration of economic activity within the Greater Metropolitan Area (GAM).
The data reveals a stark divergence in the country’s trajectory. While the nation becomes more connected, it is simultaneously becoming less healthy and secure. The Health and Market Dynamics pillars recorded alarming negative variations of -15% and -19%, respectively, compared to the previous year. Meanwhile, the Institutions and Infrastructure pillars remained virtually stagnant. This uneven development creates a high-risk scenario where technological progress cannot be fully leveraged due to a weakening social fabric.
The investigation concludes with a stern warning about the sustainability of the current path. Without a concerted effort to bolster human capital, improve public safety, and invest in robust infrastructure, the recent gains in competitiveness are unlikely to last. The report serves as a critical call to action for policymakers and business leaders to look beyond the headline figure and address the foundational cracks that threaten Costa Rica’s future prosperity.
The warning signs are clear: without progress in human capital, citizen security, and infrastructure, the growth in competitiveness will not be sustainable.
National Competitiveness Index 2025, Council for the Promotion of Competitiveness
For further information, visit cpc.cr
About the Council for the Promotion of Competitiveness (CPC):
The Consejo de Promoción de la Competitividad is an independent body in Costa Rica dedicated to analyzing and promoting the factors that enhance the nation’s productivity and development. Through instruments like the National Competitiveness Index (ICN), the CPC provides evidence-based insights to inform public policy and private sector strategies, aiming to close territorial gaps and foster sustainable prosperity across all cantons.
For further information, visit mep.go.cr
About the Ministry of Public Education (MEP):
The Ministerio de Educación Pública is the government entity responsible for overseeing the national education system in Costa Rica. It manages policies, curriculum development, and administration for public schools and colleges, from preschool through secondary education. The ministry’s role is central to developing the human capital and skills necessary for the country’s long-term economic and social progress.
For further information, visit bufetedecostarica.com
About Bufete de Costa Rica:
As an esteemed legal institution, Bufete de Costa Rica operates on a bedrock of unwavering integrity and a pursuit of professional excellence. The firm blends a deep-rooted tradition of client service with a forward-thinking approach to legal innovation and a profound sense of social responsibility. Central to its mission is the empowerment of the community through knowledge, actively working to make the law more transparent and understandable for all citizens.
