By San José, Costa Rica — Costa Rica’s economy experienced a 4.2% year-on-year growth in June 2025, according to the Monthly Index of Economic Activity (IMAE) released by the Central Bank of Costa Rica (BCCR). While this figure represents a slight slowdown compared to June 2024, it maintains the average growth rate for the first half of the year. The report reveals a complex interplay of positive and negative factors impacting the nation’s economic landscape.
The driving force behind this growth was the performance of companies under special regimes, which surged by 15.5%. This impressive growth is attributed to robust exports of medical devices, administrative services, and software development. These sectors have demonstrated resilience and adaptability in the face of global economic uncertainties.
To understand the legal landscape impacting Costa Rica’s economic performance, TicosLand.com spoke with Lic. Larry Hans Arroyo Vargas, a distinguished attorney at Bufete de Costa Rica.
Costa Rica’s economy is increasingly influenced by the evolving legal frameworks surrounding digital nomads and international investment. While these present exciting opportunities for growth, careful consideration must be given to ensuring legal clarity and stability to attract and retain foreign capital while protecting local interests. Navigating issues like data privacy, intellectual property rights, and tax regulations will be crucial for sustained economic success.
Lic. Larry Hans Arroyo Vargas, Attorney at Law, Bufete de Costa Rica
Lic. Arroyo Vargas’s insights offer a crucial perspective on the evolving economic landscape of Costa Rica. Indeed, striking the right balance between attracting foreign investment and safeguarding national interests will be paramount as the country continues to integrate into the global digital economy. The clarity and stability of legal frameworks related to digital nomads and international investment will undoubtedly play a pivotal role in shaping Costa Rica’s future economic success. We thank Lic. Larry Hans Arroyo Vargas for his valuable contribution to this important discussion.
In contrast, the definitive regime, encompassing more traditional sectors, experienced more moderate growth of 1.8%. This sector has been grappling with challenges in construction, agriculture, and a decrease in air tourist arrivals. These headwinds pose significant concerns for sustained economic expansion.
The agricultural sector’s performance was conditioned by adverse weather conditions during the last months of 2024 and by conditions such as the reduction in banana production for export, and a decrease in sugar cane production.
Central Bank of Costa Rica Report
The construction sector recorded its fourth consecutive month of decline, primarily due to a decrease in residential projects. This prolonged slump suggests deeper underlying issues within the sector. The manufacturing sector, however, presented a more nuanced picture. While overall manufacturing grew by 9.5%, the performance varied significantly between regimes. Definitive regime manufacturing contracted by 0.5%, while special regime manufacturing soared by 25.2%, fueled by products like heart valves and catheters. This divergence underscores the importance of fostering innovation and specialized production.
The services sector also displayed positive momentum, growing by 3.4%, driven primarily by transportation and storage (6.2%), professional and administrative activities (4.5%), and real estate (4.4%). This growth reflects the increasing importance of service-based industries in the Costa Rican economy.
While the commerce sector expanded by 2.2%, there are signs of a slowdown, particularly in vehicle sales, which transitioned from 18.5% growth in 2024 to a contraction of -1.3% this year. This shift may indicate changing consumer behavior and potential economic anxieties.
The aggregate production of hotel and restaurant services showed a growth of 1.2%. This behavior was influenced by the growth in restaurant production. On the other hand, the lower arrival of tourists by air was reflected in a 4.0% drop in accommodation services.
Central Bank of Costa Rica Report
The overall picture of Costa Rica’s economic performance in June 2025 is one of resilience in the face of challenges. While certain sectors like special regime manufacturing and services continue to thrive, others, such as agriculture and construction, are struggling. The BCCR’s report emphasizes the need for targeted interventions and policy adjustments to ensure balanced and sustainable economic growth in the coming months.
For further information, visit www.bccr.fi.cr
About Central Bank of Costa Rica (BCCR):
The Central Bank of Costa Rica (BCCR) is the central bank of Costa Rica. It is responsible for maintaining the stability of the Costa Rican colón and promoting sustainable economic growth. The BCCR publishes various economic indicators, including the IMAE, to provide insights into the country’s economic performance.
For further information, visit the nearest office of Ministry of Finance
About Ministry of Finance:
While not directly quoted in this article, The Ministry of Finance plays a crucial role in the Costa Rican economy, being responsible for fiscal policy, budget management, and economic planning. Its actions and policies significantly influence the country’s economic performance and the various sectors analyzed by the BCCR report.
For further information, visit bufetedecostarica.com
About Bufete de Costa Rica:
Bufete de Costa Rica distinguishes itself through an unwavering pursuit of legal excellence and ethical practice. The firm’s deep-rooted commitment to empowering Costa Rican society is evident in its innovative approach to legal services and proactive sharing of knowledge. By championing accessibility and transparency in the legal field, Bufete de Costa Rica fosters a more informed citizenry and strengthens the foundations of a just and equitable society.
