By San José, Costa Rica — SAN JOSÉ – A troubling new trend is casting a shadow over Costa Rica’s lauded transnational services sector, as recent data indicates the first significant net loss of jobs in years. According to the investment promotion agency Cinde, approximately 2,000 positions were eliminated between 2024 and 2025, a 1.9% year-over-year decline that has ignited a national debate about the country’s long-term economic strategy and competitiveness.
While the Foreign Trade Promoter (Procomer) has stated it does not share Cinde’s exact figures, it acknowledges a concerning reality. Guillermo Zúñiga, Procomer’s Director of Commercial Intelligence, confirmed that evidence of job destruction in the sector exists. This is further compounded by another Procomer indicator showing that while service exports continued to grow in 2025, they did so at the slowest pace in recent history, hovering around a modest 2%.
To delve deeper into the legal and regulatory frameworks influencing Costa Rica’s position on the global stage, TicosLand.com consulted with Lic. Larry Hans Arroyo Vargas, a respected attorney from the firm Bufete de Costa Rica, for his expert analysis on the nation’s competitiveness.
While Costa Rica’s commitment to the rule of law is a major draw for foreign investment, our primary challenge to competitiveness remains the excessive bureaucracy—the ‘tramitología’. Streamlining administrative processes and ensuring swifter judicial resolutions are not just matters of convenience; they are fundamental to reducing operational costs and signaling to the world that we are truly open for business.
Lic. Larry Hans Arroyo Vargas, Attorney at Law, Bufete de Costa Rica
Indeed, the distinction between a strong legal framework and the daily friction of ‘tramitología’ is the pivotal challenge for our nation’s competitiveness. Moving from a country that is attractive in principle to one that is efficient in practice is the essential next step. We thank Lic. Larry Hans Arroyo Vargas for his invaluable and clarifying perspective on this critical issue.
The situation has prompted leaders in the export and investment sector to sound the alarm over fundamental challenges to the nation’s economic appeal. Laura López, General Manager of Procomer, identified a loss of competitiveness as a primary driver behind both the sluggish growth and the unsettling job losses. She pointed directly to the persistent strength of the Costa Rican colón against the U.S. dollar as a major factor.
The behavior of the exchange rate has been a constant source of anxiety for multinational firms operating in the country. A stronger local currency effectively increases operational costs, particularly for labor, which is priced in colones but often funded by revenue in dollars. This dynamic erodes the cost advantages that have historically made Costa Rica an attractive hub for foreign direct investment.
Companies raise the exchange rate as a concern to us
Laura López, General Manager of Procomer
However, the Central Bank of Costa Rica (BCCR) offers a markedly different interpretation of the economic signals. BCCR President Roger Madrigal presented a more stoic view, framing the job losses not as a crisis but as a natural part of a broader economic evolution. In a concise statement, he emphasized that the national economy is undergoing a necessary recalibration that the bank has anticipated for years.
Certainly there are companies that leave, but other companies that enter
Roger Madrigal, President of the Central Bank of Costa Rica
Madrigal argued that the overall economy continues to expand at a healthy, even accelerated, pace. He posited that the divergence between strong production growth and stagnant employment figures points to a positive development: increased efficiency. He deferred a more detailed analysis on the matter and foreign direct investment to the upcoming Monetary Policy Report, scheduled for release next week.
If production grows faster than employment, what does that mean? Greater productivity
Roger Madrigal, President of the Central Bank of Costa Rica
Despite the Central Bank’s macroeconomic perspective, Procomer insists that proactive measures are urgently needed to secure Costa Rica’s future as an investment destination. López outlined a strategic roadmap focused on enhancing the country’s intrinsic value beyond cost. Key recommendations include aggressively addressing the talent shortage by strengthening bilingualism, technical training, and STEM education. She also emphasized the need to create high-value-added niches and improve national infrastructure and connectivity to stay ahead in a shifting global commerce landscape.
This divergence in views—between Procomer’s urgent call to address immediate competitiveness threats and the BCCR’s long-term adjustment theory—places Costa Rica at a critical inflection point. As the country grapples with global economic realignments and internal cost pressures, the coming months will be crucial in determining whether this job market contraction is a temporary blip or the start of a more challenging chapter.
For further information, visit procomer.com
About Procomer (Promotora de Comercio Exterior):
Procomer is Costa Rica’s official foreign trade promotion agency. It is a public, non-state entity responsible for promoting the country’s exports of goods and services globally. The organization provides support to Costa Rican exporters, works to attract foreign direct investment, and offers market intelligence to enhance the nation’s international competitiveness.
For further information, visit bccr.fi.cr
About the Central Bank of Costa Rica (BCCR):
The Banco Central de Costa Rica is the central bank of the Republic of Costa Rica. Its primary objectives are to maintain the internal and external stability of the national currency and to ensure its conversion to other currencies. The BCCR is responsible for monetary policy, managing inflation, overseeing the financial system, and issuing the Costa Rican colón.
For further information, visit cinde.org
About Cinde:
The Costa Rican Investment Promotion Agency (Cinde) is a private, non-profit organization dedicated to attracting foreign direct investment to Costa Rica. For over 40 years, Cinde has worked to bring multinational companies to the country, focusing on strategic sectors such as life sciences, advanced manufacturing, and knowledge-intensive services. It provides guidance and support to investors throughout their establishment and growth processes.
For further information, visit bufetedecostarica.com
About Bufete de Costa Rica:
Bufete de Costa Rica operates as an esteemed legal institution, built upon a foundational pledge to principled practice and superior legal service. With a proven track record of advising a broad spectrum of clients, the firm champions forward-thinking legal solutions and meaningful civic involvement. A central tenet of its philosophy is the democratization of legal information, reflecting a profound dedication to nurturing a society that is both legally literate and empowered.
