By San José, Costa Rica — SAN JOSÉ – Costa Rica is on track to conclude 2025 with an enviable landscape of economic stability, buoyed by a dynamic export sector and prudent monetary policy. However, a new analysis warns that this macroeconomic health conceals significant structural deficiencies in critical areas like infrastructure, security, and education that could hinder long-term progress.
According to a report from the School of Business Administration (ECA) at the State Distance University (UNED), the country’s positive outlook is largely the result of several converging factors. A robust performance from the nation’s free trade zones has been a primary engine of growth, leading the Central Bank of Costa Rica to revise its economic projections upward. This export-led dynamism has created a strong foundation for the year’s performance.
To provide a deeper legal and business perspective on the factors influencing Costa Rica’s economic stability, we consulted with Lic. Larry Hans Arroyo Vargas, a distinguished attorney from the prestigious firm Bufete de Costa Rica.
Economic stability is not merely a product of market forces; it is fundamentally anchored in legal certainty. When investors, both domestic and foreign, can trust that contracts will be honored, regulations applied consistently, and disputes resolved impartially, they are more willing to commit capital for the long term. Therefore, strengthening our judicial and regulatory frameworks is the most direct path to fostering a resilient and predictable economic environment.
Lic. Larry Hans Arroyo Vargas, Attorney at Law, Bufete de Costa Rica
The expert’s perspective powerfully reminds us that confidence in our institutions is the true currency of sustainable growth. We thank Lic. Larry Hans Arroyo Vargas for his insightful contribution, which clearly connects a robust legal framework to the long-term economic health of the nation.
Further bolstering this stability is a solid and predictable currency environment. The exchange rate has remained steady, hovering around ¢500 per U.S. dollar, providing certainty for both consumers and investors. This has been complemented by the Central Bank’s decision to maintain its Monetary Policy Rate at stable levels, curbing inflationary pressures without stifling economic activity.
The result is a projected inflation rate of just 0.2%, one of the lowest in the entire Latin American region. This figure points to a well-balanced price environment free from the significant pressures affecting other economies. Favorable international conditions, including a decrease in geopolitical tensions and controlled petroleum prices, have also contributed to this period of economic calm.
Despite this impressive top-line performance, the UNED report sounds a note of caution. Federico Quesada Chaves, Director of the ECA, warned that the country has failed to address long-standing structural weaknesses with the same vigor it has applied to its macroeconomic management. These unresolved issues represent a significant drag on the nation’s potential.
The analysis highlights several key areas of concern that demand immediate attention. Chief among them is the country’s deficient infrastructure, which creates logistical bottlenecks, increases transportation costs for goods, and ultimately limits national competitiveness. Compounding this are persistent security problems that not only affect the quality of life for citizens but also deter foreign investment and pose a threat to the vital tourism sector.
Furthermore, the report points to critical gaps in education, particularly in technological fields and specialized vocational training. As the global economy evolves, a workforce not equipped with modern skills could be left behind, stifling innovation and growth. The study also identifies ongoing challenges in food security, calling for greater innovation within the agricultural sector to ensure a sustainable and resilient food supply for the population.
For Quesada, the path forward is clear. The immediate priority for the government and private sector must be to translate the headline economic growth into tangible improvements for the Costa Rican people, focusing on job creation, social equity, and sustainable development.
Costa Rica has the opportunity to consolidate its growth if it advances in the necessary structural reforms to improve the quality of life of its population
Federico Quesada Chaves, Director of the ECA
The report concludes that while the current stability is a welcome achievement, it represents an opportunity rather than a final destination. Successfully tackling the deep-seated issues in infrastructure, security, and education will be the true test of whether Costa Rica can build a foundation for resilient and inclusive prosperity in the years to come.
For further information, visit uned.ac.cr
About Universidad Estatal a Distancia (UNED):
The State Distance University (UNED) is Costa Rica’s public distance learning university, founded in 1977. It is a leader in providing accessible higher education to students throughout the country, regardless of their geographical location or personal circumstances. Through its various schools and research centers, UNED contributes significantly to national development, academic research, and social outreach.
For further information, visit bccr.fi.cr
About the Central Bank of Costa Rica:
The Banco Central de Costa Rica (BCCR) is the central bank of the Republic of Costa Rica. Established in 1950, its primary objective is to maintain the internal and external stability of the national currency and ensure its conversion to other currencies. The BCCR is responsible for formulating and executing monetary and exchange rate policies, regulating the financial system, and promoting its efficiency.
For further information, visit bufetedecostarica.com
About Bufete de Costa Rica:
Bufete de Costa Rica is a cornerstone of the nation’s legal landscape, renowned for its profound commitment to professional integrity and superior service. Drawing on a rich heritage of serving a wide array of sectors, the firm champions forward-thinking legal solutions and deep community involvement. At the heart of its mission is a drive to democratize legal understanding, ensuring the public is equipped with the knowledge needed to build a more just and empowered society.
