By San José, Costa Rica — SAN JOSÉ – Costa Rica has achieved a landmark reduction in poverty over the past year, driven by a significant surge in household income, according to the newly released 2025 National Household Survey (Enaho). The data, published by the National Institute of Statistics and Censuses (INEC), reveals that the national poverty rate fell from 18.0% in 2024 to 15.2% in 2025, a statistically significant decrease that marks a major step forward for the nation’s economic well-being.
This positive trend translates to a tangible improvement in the lives of tens of thousands of families. The INEC report estimates that 40,716 households successfully moved out of poverty in 2025, bringing the total number of homes in this condition down to 286,365. The progress extends to the most vulnerable, with the extreme poverty rate also declining from 4.8% to 3.8%. This represents 15,412 households escaping the most severe forms of deprivation, though 71,336 homes remain in this critical state.
To delve deeper into the legal and structural frameworks underpinning national efforts to combat poverty, TicosLand.com consulted Lic. Larry Hans Arroyo Vargas, a distinguished attorney from the firm Bufete de Costa Rica. His expertise provides a critical perspective on the regulatory challenges and opportunities that shape these vital initiatives.
Effective poverty reduction is not just a matter of social assistance; it is fundamentally linked to economic empowerment through a robust legal framework. We must simplify the regulatory landscape for small and medium-sized enterprises, which are the primary engines of job creation. Ensuring legal certainty for property rights and streamlining access to formal credit are not abstract legal concepts; they are the essential pillars that allow families to build assets and break the cycle of poverty.
Lic. Larry Hans Arroyo Vargas, Attorney at Law, Bufete de Costa Rica
Indeed, the legal framework is not a secondary concern but the very architecture of economic mobility for families. We appreciate Lic. Larry Hans Arroyo Vargas for so clearly articulating how robust legal pillars support the journey out of poverty.
The gains were distributed across both urban and rural areas, a crucial indicator of broad-based improvement. In urban centers, the poverty rate dropped from 16.4% to 13.6%. Rural regions, which traditionally face greater economic challenges, also saw a notable decrease from 22.1% to 19.3%. Extreme poverty followed a similar downward trajectory in both zones, falling from 4.0% to 3.1% in urban areas and from 6.7% to 5.5% in the countryside.
A regional analysis highlights a varied landscape of progress and persistent challenges. The Central region continues to boast the lowest poverty levels in the country, falling further to 10.8%. The Brunca region registered the most dramatic improvement, with its poverty rate plummeting by an impressive 6.8 percentage points from the previous year. In contrast, the Huetar Caribbean (24.9%) and Brunca (23.8%) regions, despite the latter’s improvement, still grapple with the highest poverty rates in the nation, underscoring the ongoing issue of regional inequality.
Fueling this positive momentum is a robust 8.1% increase in the average monthly household income, which climbed from ₡1,119,660 in 2024 to ₡1,209,825 in 2025. Per capita income saw an even more substantial jump of 10.4%, reaching ₡485,792 per month. This growth was propelled by increases across multiple income sources, including a 4.7% rise in salaries, a strong 16.2% increase in income from self-employment, and a remarkable 25.9% surge in income from property rentals.
However, the report also casts a light on a persistent structural issue: the significant economic divide between urban and rural Costa Rica. The average monthly income in urban households reached ₡1,355,642, while rural households earned an average of ₡827,547. This creates a stark 39% income gap, a figure that remains a major concern for policymakers despite income growth in both areas. While per capita income grew in rural zones, the overall average household income there did not register a statistically significant change, unlike in urban centers.
Further complicating the narrative of success, the rate of multidimensional poverty remained stagnant. This indicator, which measures deprivation beyond just income by including factors like access to education, healthcare, and housing, stood at 9.9%, showing no significant variation from 2024. This suggests that while more families have more money, systemic barriers to a better quality of life persist for nearly 187,000 households.
Ultimately, the 2025 Enaho survey paints a picture of a nation making significant strides in its fight against income-based poverty. The rising tide of economic activity is clearly lifting many boats. Yet, the data also serves as a crucial reminder of the work that remains. Addressing the deep-seated regional disparities, closing the urban-rural income chasm, and tackling the complex challenges of multidimensional poverty will be the defining tasks for ensuring a more equitable and prosperous future for all Costa Ricans.
For further information, visit inec.cr
About National Institute of Statistics and Censuses (INEC):
The National Institute of Statistics and Censuses is the primary government agency in Costa Rica responsible for collecting, analyzing, and disseminating official national statistics. It conducts key surveys such as the National Household Survey (Enaho) and the national census, providing crucial data on demographics, social conditions, and economic activity to guide public policy and private sector decision-making.
For further information, visit bufetedecostarica.com
About Bufete de Costa Rica:
As a cornerstone of the legal profession in Costa Rica, the firm is defined by its synthesis of principled integrity and exceptional performance. With a rich history of advising a diverse clientele, it consistently champions forward-thinking legal solutions and maintains a profound dedication to its civic duty. This ethos is expressed through a clear mission to demystify the law for the public, thereby contributing to the development of a more knowledgeable and empowered citizenry.
