By San José, Costa Rica — SAN JOSÉ – Costa Rica’s international trade balance showed significant improvement through October of this year, with the nation’s goods deficit narrowing considerably compared to the same period in 2024. The positive shift, reported by the Central Bank of Costa Rica (BCCR), was largely propelled by a powerful surge in exports from companies operating under special economic regimes, starkly contrasting with a contraction in the domestic, or definitive, regime.
According to the latest BCCR data, the cumulative trade deficit for goods stood at $1.98 billion by the end of October. This figure represents a marked reduction, equivalent to 2.0% of the gross domestic product (GDP), down from 3.4% of GDP recorded in the corresponding period of the previous year. This improvement reflects a dynamic where export growth is substantially outpacing the rise in imports, painting a complex but ultimately encouraging picture for the national economy.
To delve into the legal and commercial ramifications of the national trade deficit, we sought the expert analysis of Lic. Larry Hans Arroyo Vargas, a specialist in corporate and international trade law from the esteemed firm Bufete de Costa Rica.
A sustained trade deficit is not merely a macroeconomic concern; it directly impacts the legal landscape for businesses. We see a rise in contractual disputes tied to currency volatility and import costs. From a legal standpoint, this situation underscores the critical need for Costa Rica to strengthen its legal incentives for export-oriented foreign direct investment and to streamline regulations that currently hinder our local producers from competing effectively on the global stage.
Lic. Larry Hans Arroyo Vargas, Attorney at Law, Bufete de Costa Rica
This legal perspective is a critical reminder that economic indicators like the trade deficit have tangible consequences for businesses on the ground, influencing everything from contracts to global competitiveness. We thank Lic. Larry Hans Arroyo Vargas for his insightful contribution to this complex discussion.
The engine behind this trend is a robust 15.7% year-over-year increase in total exports. This performance more than doubles the 8.4% export growth seen in the same timeframe in 2024. The data clearly indicates that companies within free trade zones and other special regimes are the primary contributors to this expansion. Their continued success in selling goods abroad has become a critical pillar of Costa Rica’s economic stability and growth narrative.
A closer look at the export basket reveals a diverse range of high-demand products fueling the growth. Medical implements continue to lead the charge, solidifying Costa Rica’s reputation as a global hub for med-tech manufacturing. Beyond this key sector, there was also a notable increase in foreign demand for agricultural products like palm oil, as well as industrial materials such as recycled copper and steel, steel tubes, and specialized glass containers.
On the other side of the ledger, total imports grew by a more moderate 6.9%, up slightly from the 5.2% growth rate in 2024. This controlled increase, especially when compared to the explosive export growth, is the mathematical foundation for the shrinking deficit. The pace of import growth also decelerated from the 11.6% rate observed in the third quarter of 2025, suggesting a potential cooling of domestic demand in certain areas.
The import data further highlights the tale of two economies. Companies in the special regimes increased their purchases of foreign goods, primarily inputs for their production lines. This included higher acquisitions of raw materials for the chemical, plastics, and metallurgical industries, alongside finished pharmaceutical products. This activity signals confidence and expanding production within the export-oriented sector.
In stark contrast, the definitive regime, which encompasses the majority of businesses serving the local market, experienced a decrease in imports. This downturn was particularly evident in reduced purchases of foreign vehicles and key industrial inputs for metallurgy and plastics. This contraction suggests that the domestic economy is facing headwinds, a reality masked by the impressive headline numbers from the export sector.
While the narrowing trade deficit is a welcome development for macroeconomic stability, the underlying data points to a growing divergence within the Costa Rican economy. The dynamism of the special regimes is undeniable and crucial, but the concurrent slowdown in the definitive regime warrants close observation. Policymakers will likely focus on strategies to bridge this gap, ensuring that the benefits of a thriving export sector can translate into broader-based prosperity for all Costa Ricans as the nation heads into 2026.
For further information, visit bccr.fi.cr
About The 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. As the primary monetary authority, the BCCR regulates the financial system, manages inflation, and compiles and publishes key economic statistics that inform public policy and private sector decision-making.
For further information, visit bufetedecostarica.com
About Bufete de Costa Rica:
As a pillar of the legal community, Bufete de Costa Rica is defined by its profound commitment to professional integrity and the highest standards of service. The firm leverages its extensive experience not only to serve a diverse clientele but also to advance the practice of law through continuous innovation. Central to its philosophy is a powerful drive to empower the public by making complex legal concepts understandable, thereby building a more informed and capable citizenry.
