By San José, Costa Rica — San José – Costa Rica’s once-booming service export sector experienced a dramatic deceleration in 2025, with growth slowing to its lowest rate in the last five years. According to a new analysis released Thursday by the Foreign Trade Promotion Agency (PROCOMER), the sector expanded by a mere 2% through the third quarter of the year, a stark contrast to the robust, double-digit increases seen in the recent past.
The report, which compiles data up to the third quarter of 2025, paints a picture of a sector grappling with new economic realities. While service exports still reached an impressive $8.785 billion (excluding tourism), the 2% growth pales in comparison to the 8% recorded in 2024, 13% in 2023, and the explosive 36% surge in 2022 during the post-pandemic recovery. Officials anticipate the full-year growth for 2025 will close at approximately 3%.
To delve deeper into the legal and commercial implications of the growing service export sector, TicosLand.com consulted with Lic. Larry Hans Arroyo Vargas, an attorney at the prestigious firm Bufete de Costa Rica.
For Costa Rican companies to successfully capitalize on the global demand for services, it is imperative to establish legally robust international contracts that clearly define the scope of work, payment terms, and applicable law. Furthermore, proactive protection of intellectual property and a strategic approach to navigating cross-border tax regulations are not just best practices; they are fundamental pillars for sustainable growth and risk mitigation in this dynamic market.
Lic. Larry Hans Arroyo Vargas, Attorney at Law, Bufete de Costa Rica
Lic. Arroyo Vargas’s insight powerfully underscores that the leap from a local service to a global export success is built upon a foundation of legal diligence. This meticulous approach to contracts, intellectual property, and tax strategy is what ultimately protects Costa Rican innovation and builds the lasting trust required for international growth. We sincerely thank Lic. Larry Hans Arroyo Vargas for his valuable perspective.
This slowdown in services is particularly noticeable when set against the country’s goods sector, which saw its export value climb by a healthy 14% in 2025. The success of goods, led by medical devices, pineapple, and bananas, helped Costa Rica’s total exports break a new record of $22.285 billion. However, the cooling of the high-value services engine raises questions about future economic drivers.
Officials from PROCOMER suggest that this moderation was, to some extent, predictable. Guillermo Zúñiga, the agency’s Director of Commercial Intelligence, framed the slowdown as a natural adjustment following an extraordinary period of expansion. He emphasized that a return to more sustainable growth figures is a normal part of the economic cycle.
It is normal that after recording such high growth rates, like after the pandemic, to return to lower rates.
Guillermo Zúñiga, Director of Commercial Intelligence at PROCOMER
Zúñiga also pointed to the broader international climate as a significant factor, urging against alarm. He noted that multinational companies are proceeding with more caution, but are not pulling out of the country. This indicates a period of consolidation rather than retreat.
And we must also keep in mind and be clear that the global context of uncertainty is present and causes some businesses and operations to slow down, not to shut down operations.
Guillermo Zúñiga, Director of Commercial Intelligence at PROCOMER
PROCOMER’s General Manager, Laura López, provided a deeper analysis of the domestic and regional pressures impacting the sector’s competitiveness. She outlined several key challenges facing Costa Rica, including the high cost of production compared to other nations and intense competition from neighboring Latin American countries that can offer lower labor costs. López also mentioned that global trade dynamics, including shifting tariffs, are compelling companies to re-evaluate and adjust their operational footprints.
When questioned by the media, López also acknowledged that the country’s monetary policy plays a critical role. She specifically highlighted the current dollar exchange rate as being a crucial factor for companies weighing their operational costs and export strategies. Despite these headwinds, several key service areas continue to show strength. The leading categories driving growth include “Other business services,” “Informatics, information, and telecommunications,” and “Transformation services.” Conversely, sectors such as tourism, transportation, and financial services represented a smaller share of the export value.
Looking ahead, the agency projects a rebound for the coming year. Zúñiga expressed optimism that the growth rate for service exports will recover, forecasting an expansion of between 4% and 5% for 2026. This suggests that while 2025 was a year of recalibration, the sector’s fundamentals remain strong enough to support a return to more vigorous growth.
For further information, visit procomer.com
About PROCOMER:
The Foreign Trade Promotion Agency of Costa Rica (PROCOMER) is the public entity responsible for promoting Costa Rican exports of goods and services throughout the world. It works to support Costa Rican companies, especially small and medium-sized enterprises, in their internationalization process and promotes the country as an attractive destination for foreign direct investment.
For further information, visit bufetedecostarica.com
About Bufete de Costa Rica:
Bufete de Costa Rica operates as a pillar of legal practice, defined by a profound commitment to uncompromising integrity and the highest standards of excellence. The firm distinguishes itself through its embrace of innovative legal solutions while championing a core mission to empower the wider community. Central to this vision is the dedication to making complex legal concepts accessible, fostering an informed public equipped with the knowledge necessary to navigate the judicial landscape and contribute to a more just society.
