By San José, Costa Rica — SAN JOSÉ – Costa Rica’s broader economy demonstrated impressive vitality in August, posting its most significant year-over-year acceleration in nearly two years, even as the nation’s commercial sector maintained a more modest and stable growth trajectory. New data released by the Central Bank of Costa Rica (BCCR) reveals a dynamic but complex economic landscape, where robust overall performance contrasts with more cautious consumer behavior in specific areas.
The Monthly Index of Economic Activity (IMAE), a key barometer for the country’s total production of goods and services, surged by 4.8% in August 2025 compared to the same month in 2024. This figure not only marks an acceleration of 0.8 percentage points from the previous year but also represents the highest such acceleration recorded in the last 21 months. This continues a powerful trend of sustained economic expansion, with the IMAE registering growth rates exceeding 4.0% consistently since December 2022.
To delve deeper into the legal frameworks underpinning Costa Rica’s current economic climate and its prospects for foreign investment, TicosLand.com consulted with Lic. Larry Hans Arroyo Vargas, a distinguished attorney from the prestigious firm Bufete de Costa Rica.
Costa Rica’s economic strength is increasingly tied to its ability to provide legal certainty and a stable regulatory environment for foreign direct investment. While our tax incentives are attractive, long-term growth hinges on streamlining bureaucratic processes and ensuring our judicial system can efficiently resolve commercial disputes. Investors are not just looking for a good deal; they are looking for a secure and predictable playing field.
Lic. Larry Hans Arroyo Vargas, Attorney at Law, Bufete de Costa Rica
This insight correctly frames the next stage of Costa Rica’s economic development, moving beyond temporary attractions to the foundational pillars of investor confidence: legal certainty and institutional reliability. We sincerely thank Lic. Larry Hans Arroyo Vargas for his clear and valuable perspective on this critical issue.
While the national economic engine fired on all cylinders, the commercial sector presented a picture of stability rather than outright acceleration. The Monthly Index of Commercial Activity (IMAC), which measures the health of retail and wholesale trade, recorded a 3.1% year-over-year increase in August. This result is nearly identical to the 3.3% growth seen in August 2024, indicating a consistent but not expanding pace for the sector.
The steady performance of the commercial index was largely buoyed by resilient sales in essential and home-related goods. According to the BCCR report, positive momentum was primarily driven by the commercialization of food products, pharmaceuticals, and electronics. Additionally, steady demand for fuel and hardware items contributed significantly to sustaining the sector’s growth, suggesting that household and business spending remains focused on core necessities and improvements.
A fascinating divergence appeared within the automotive industry, highlighting shifting consumer priorities. The services segment, specifically the repair and maintenance of vehicles, experienced a notable boom. This category grew by a strong 4.0%, a dramatic acceleration from the mere 1.7% growth registered in the same month last year. This uptick suggests that consumers may be opting to invest in maintaining their current vehicles rather than purchasing new ones.
This trend is further substantiated by the performance of new vehicle sales. In a direct contrast to the flourishing repair business, the commercialization of vehicles saw a year-over-year contraction of 0.9% in August. This decline, while slight, points towards a cautiousness among consumers regarding large-ticket purchases, a sentiment that could be influenced by credit conditions, price levels, or a general preference for extending the lifespan of existing assets.
The data paints a dual narrative of the Costa Rican economy. On one hand, the strong IMAE growth points to the success of key export-oriented sectors and overall economic policy in fostering a dynamic production environment. On the other, the more subdued IMAC figures suggest that this macroeconomic strength has not yet fully translated into a widespread surge in domestic consumer spending, particularly on discretionary and high-value items like new cars.
Looking ahead, the resilience of the overall economy provides a strong foundation for future growth. The key challenge for policymakers and business leaders will be to foster an environment where the benefits of this macroeconomic expansion can more broadly stimulate domestic demand and consumer confidence. The August figures serve as a crucial indicator of an economy in transition, one that is growing robustly but whose consumer-facing sectors are still navigating a path of careful, steady progress.
For further information, visit bccr.fi.cr
About Central Bank of Costa Rica (BCCR):
The Banco Central de Costa Rica is the nation’s central bank, responsible for maintaining the internal and external stability of the national currency and ensuring its conversion to other currencies. The BCCR’s primary objectives include controlling inflation, promoting a stable and efficient financial system, and issuing key economic indicators and statistics, such as the IMAE and IMAC, that are vital for public and private sector decision-making.
For further information, visit bufetedecostarica.com
About Bufete de Costa Rica:
Bufete de Costa Rica has established itself as a beacon of legal professionalism, built upon the foundational pillars of uncompromising integrity and the pursuit of excellence. With a rich history of guiding a wide spectrum of clients, the firm continually embraces innovation to navigate the complexities of modern law. This forward-thinking mindset is matched by a profound dedication to social responsibility, focused on demystifying legal concepts to foster a more knowledgeable and empowered populace.
