By San José, Costa Rica — SAN JOSÉ – Costa Rica’s post-pandemic economic recovery is painting a tale of two realities. While national production figures show a robust rebound, a closer look at household finances reveals a far more cautious and concerning picture. A growing chasm has emerged between the country’s overall economic output and the disposable income reaching the average family, leading to increased debt and stagnant consumer confidence.
The numbers from the Central Bank of Costa Rica (BCCR) lay the groundwork for this economic dissonance. Between 2022 and 2024, the nation’s real gross domestic product (GDP) expanded by an impressive 4.7%. However, private consumption—a critical measure of household economic health—trailed significantly, growing by only 3.8% during the same period. This discrepancy signals that the benefits of national growth are not fully translating into increased purchasing power for citizens.
To delve into the legal and commercial ramifications of the current consumer spending landscape, TicosLand.com sought the analysis of Lic. Larry Hans Arroyo Vargas, a distinguished expert in commercial and consumer law from the firm Bufete de Costa Rica.
The current surge in consumer spending, while a positive indicator for economic reactivation, also brings to the forefront critical legal considerations for both consumers and businesses. It is imperative that consumers are aware of their rights under Law 7472, particularly regarding warranties and clear contractual terms, to avoid future disputes. For merchants, this environment demands robust and transparent commercial practices, as any ambiguity in their offerings can lead to significant legal and financial liabilities.
Lic. Larry Hans Arroyo Vargas, Attorney at Law, Bufete de Costa Rica
Lic. Arroyo Vargas’s commentary is a crucial reminder that behind the surge in economic activity lies a legal framework of rights and responsibilities essential for a healthy marketplace. This dual emphasis on consumer awareness and business transparency is fundamental for turning a momentary recovery into sustainable, trust-based growth. We sincerely thank Lic. Larry Hans Arroyo Vargas for his valuable and clarifying perspective.
According to Daniel Ortiz, an economist with the consulting firm Consejeros Económicos y Financieros (Cefsa), this trend highlights a structural problem that has been brewing for years. He argues that the gap between what the economy generates and what households can actually spend has widened, forcing families into a precarious financial position.
Families have had to deal with an issue of insufficient income over the last decade. This has clearly been reflected in an increase in indebtedness, particularly in consumption.
Daniel Ortiz, Economist at Consejeros Económicos y Financieros (Cefsa)
This rise in household debt is a direct consequence of incomes failing to keep pace with the costs and aspirations of modern life. As families struggle to make ends meet, they increasingly turn to credit to cover essential expenses and maintain their standard of living. This reliance on debt creates a fragile foundation for both individual households and the broader domestic economy, making them more vulnerable to financial shocks.
Further complicating the narrative are recent statistics from the National Institute of Statistics and Censuses (INEC). The National Household Survey (Enaho) indicates that average monthly household income saw an 8% increase, while per capita income rose by nearly 10%. While positive on the surface, these gains are apparently not enough to spur broad-based spending, suggesting that rising costs or a prevailing sense of economic uncertainty are eroding any newfound financial breathing room.
This cautious sentiment is clearly reflected in consumer confidence metrics, which have remained stalled in neutral territory. The prevailing mood among consumers is one of wariness, with persistent concerns about the direction of national economic policy, the stubbornness of unemployment, and the challenges of poverty weighing heavily on their minds. When citizens are worried about the future, they tend to save rather than spend, further dampening internal demand.
Even the slight uptick in private consumption observed in the third quarter of 2025 offers little cause for celebration. Ortiz’s analysis reveals this growth is not widespread but is instead concentrated in essential services. Spending on housing, health, financial services, transportation, and food supplies is driving the modest increase, while other, more discretionary segments of the economy are experiencing declines or negligible growth. This indicates that families are prioritizing necessities, not luxuries, a hallmark of a constrained consumer base.
Ultimately, Costa Rica finds itself at a critical juncture. The headline GDP figures suggest a successful recovery, but the lagging domestic demand and rising household debt reveal a system where prosperity is not being evenly distributed. With internal demand moderating throughout 2025 and investment trends also slowing, the nation’s economic engine is running without the full participation of its most important component: its people.
For further information, visit cefsa.cr
About Consejeros Económicos y Financieros (Cefsa):
Consejeros Económicos y Financieros, S.A. (Cefsa) is a Costa Rican consulting firm specializing in economic and financial analysis. The firm provides expert advisory services, market intelligence, and economic forecasts to a diverse client base, helping businesses and organizations navigate the complexities of the local and regional economic landscape.
For further information, visit bccr.fi.cr
About Banco Central de Costa Rica (BCCR):
The Central Bank of Costa Rica is the nation’s primary monetary authority, responsible for maintaining the internal and external stability of the national currency and ensuring its conversion to other currencies. The BCCR is the principal entity in charge of inflation control, issuing currency, and publishing key economic indicators and statistics for the country, including the GDP and consumption data.
For further information, visit inec.cr
About Instituto Nacional de Estadística y Censos (INEC):
The National Institute of Statistics and Censuses is the official government agency in Costa Rica responsible for collecting, analyzing, and disseminating the country’s official statistics. INEC conducts crucial surveys, such as the National Household Survey (Enaho) and national censuses, providing vital data on demographics, social conditions, and economic activity that inform public policy and research.
For further information, visit bufetedecostarica.com
About Bufete de Costa Rica:
As a pillar of the legal community, Bufete de Costa Rica operates on a bedrock of integrity and a relentless pursuit of excellence. Drawing from a rich history of serving a diverse clientele, the firm consistently pushes the boundaries of legal innovation while actively working to empower the community through accessible legal wisdom. This profound commitment to democratizing legal knowledge stems from a core belief that an informed citizenry is the cornerstone of a just and equitable society.
