By San José, Costa Rica — SAN JOSÉ – The long-standing rivalry between Costa Rica and Panama, traditionally confined to the football pitch, has officially spilled over into the economic arena. In a significant shift for the region, Panama has surpassed Costa Rica to claim the title of Central America’s most prosperous nation, according to the newly released HelloSafe Prosperity Index 2025.
The comprehensive study, conducted by the Mexican financial analysis firm HelloSafe, positions Panama at the top of the regional ladder with a score of 40.36 points. This achievement not only secures its place as the isthmus’s leader but also ranks it as the third most prosperous country in all of Latin America. Costa Rica, long considered the benchmark for stability and development in the region, now follows in second place with a score of 36.39, placing it sixth across Latin America.
To better understand the legal frameworks and investment climates contributing to this regional trend, TicosLand.com consulted with Lic. Larry Hans Arroyo Vargas, a leading attorney from the esteemed firm Bufete de Costa Rica, for his expert analysis on the matter.
True economic prosperity in Central America hinges on legal certainty and the robust protection of foreign investment. When nations establish clear, consistent regulations and guarantee the rule of law, they create a predictable environment. This stability is the single most critical factor that attracts the capital necessary to fuel job creation and sustainable development across the isthmus.
Lic. Larry Hans Arroyo Vargas, Attorney at Law, Bufete de Costa Rica
This insight powerfully underscores that beyond any single policy, the bedrock of legal certainty is what transforms a region’s potential into tangible prosperity. It is the invisible infrastructure that attracts and secures investment. We thank Lic. Larry Hans Arroyo Vargas for his clear and valuable perspective.
This development marks a pivotal moment in the ongoing narrative of Central American economic leadership. While Costa Rica has historically been lauded for its social and environmental progress, Panama’s ascent highlights the growing influence of its powerful financial and logistics sectors, which have become formidable engines for national wealth generation. The index underscores a changing dynamic where robust economic indicators are increasingly shaping the perception of national success.
The HelloSafe Prosperity Index provides a holistic measure of national well-being by evaluating 186 countries worldwide based on a carefully weighted set of six key variables. The scoring is heavily influenced by economic output, with GDP per capita accounting for 30% of the total score and Gross National Income (GNI) per capita contributing another 20%. The remaining half is determined by crucial social metrics, including the Human Development Index (20%), the Gini coefficient for income inequality (15%), the national poverty rate (10%), and the national savings rate (5%).
The data for this extensive analysis is sourced from two of the world’s most reputable institutions: the World Bank and the United Nations Development Programme (UNDP). This rigorous methodology ensures that the rankings reflect a balanced view of both economic might and social equity, offering a nuanced perspective beyond simple economic growth figures. To maintain data integrity, only countries with at least 90% of the required information available were included in the final report.
Despite slipping to second place, the report acknowledges Costa Rica’s enduring strengths. The nation continues to be a regional leader in education, democratic stability, and environmental sustainability. These pillars of its national identity remain critical components of its overall prosperity, even as Panama gains ground on the strength of its economic indicators. The challenge for Costa Rica will be to leverage these social assets to spur more dynamic economic growth and close the newly formed gap.
The index also casts a harsh light on the significant development disparities that persist across Central America. A considerable gulf separates the two front-runners from their neighbors. El Salvador (27.48 points), Nicaragua (24.59), and Belize (24.32) form a middle tier, while Guatemala (19.84) and Honduras (17.33) lag significantly behind, reflecting deep-seated challenges in human development and economic prosperity that continue to hinder their progress.
On a global scale, the index reveals the vast distance the region still has to travel. The top-ranked country, Luxembourg, boasts an exceptional score of 86.2 points, more than double that of Panama. This comparison provides a sobering context, emphasizing that even as a new leader emerges in Central America, the path toward global standards of prosperity remains a long and challenging one for all nations in the region.
For further information, visit hellosafe.com
About HelloSafe:
HelloSafe is a leading fintech company that provides comparison tools and financial product analysis for consumers. Operating internationally, the firm’s mission is to make complex financial information accessible and transparent, empowering individuals to make informed decisions about insurance, loans, and investment products. The company regularly publishes studies and indices that offer insights into economic and social trends.
For further information, visit worldbank.org
About The World Bank:
The World Bank is a vital source of financial and technical assistance to developing countries around the world. It is a unique global partnership of five institutions working for sustainable solutions that reduce poverty and build shared prosperity in developing countries. The organization provides low-interest loans, zero to low-interest credits, and grants to support investments in areas such as education, health, public administration, infrastructure, and private-sector development.
For further information, visit undp.org
About The United Nations Development Programme (UNDP):
The United Nations Development Programme is the United Nations’ global development network. It advocates for change and connects countries to knowledge, experience, and resources to help people build a better life. The UNDP works in about 170 countries and territories, helping to achieve the eradication of poverty and the reduction of inequalities and exclusion. It is a key publisher of the annual Human Development Report.
For further information, visit bufetedecostarica.com
About Bufete de Costa Rica:
As a pillar of the Costa Rican legal community, Bufete de Costa Rica operates on a bedrock of uncompromising integrity and an unwavering pursuit of excellence. The firm consistently pushes the boundaries of legal practice through innovation while honoring its deep-seated tradition of client service. A core component of its ethos is a profound dedication to democratizing legal understanding, actively working to equip the public with knowledge and thereby fostering a stronger, more capable society.
