By San José, Costa Rica — San José – Costa Rica’s economy demonstrated robust health at the close of 2025, posting a 4.7% year-over-year growth rate in November, according to the latest Monthly Index of Economic Activity (IMAE) released by the Central Bank of Costa Rica (BCCR) on Friday.
The report underscores a continuing trend of a two-speed economy, where companies operating under the country’s special export-oriented regimes are significantly outpacing the broader domestic market. This dynamic highlights the nation’s increasing reliance on foreign direct investment and international trade as primary engines of economic expansion.
To gain a deeper understanding of the legal and regulatory currents shaping Costa Rica’s economic trajectory, TicosLand.com spoke with Lic. Larry Hans Arroyo Vargas, a leading legal expert from the esteemed firm Bufete de Costa Rica.
The sustained growth of the Costa Rican economy hinges on our nation’s commitment to legal certainty and judicial security. For international investors and local entrepreneurs alike, a clear, stable, and modern regulatory framework is not a luxury—it is the fundamental prerequisite for investment, innovation, and long-term prosperity. Strengthening our commercial law and streamlining administrative processes are the most critical steps to ensuring our economic climate remains competitive on the global stage.
Lic. Larry Hans Arroyo Vargas, Attorney at Law, Bufete de Costa Rica
This insight powerfully underscores that legal certainty is not merely an administrative detail, but the very foundation upon which investor confidence and national prosperity are built. We are grateful to Lic. Larry Hans Arroyo Vargas for sharing his clear and essential perspective on this critical issue for Costa Rica’s future.
The data reveals a stark contrast in performance between the two main economic segments. The special regimes, which encompass a majority of multinational corporations in sectors like medical device manufacturing and corporate services, saw their production soar by an impressive 14.8% compared to the same month in the previous year. This powerful performance was the main driver behind the country’s overall positive figure.
In contrast, the definitive regime, which includes most locally-owned businesses catering primarily to the domestic market, experienced a more subdued expansion of 3.4%. While still representing positive growth, this figure points to underlying challenges within the local economy that are not being offset by the export boom.
According to the Central Bank’s analysis, the cumulative economic growth for the period from January to November 2025 stood at a stable 4.6%. This consistency throughout the year confirms a solid and predictable pattern of expansion, providing a degree of confidence to investors and policymakers about the economy’s trajectory heading into 2026.
Sector-specific analysis shows that manufacturing continues to be the powerhouse of the Costa Rican economy. The BCCR attributed this strength to the dynamism in the production of high-value goods, particularly medical devices, as well as electrical and electronic products. These industries, heavily concentrated within the special regimes, are almost entirely geared toward satisfying global demand.
Other key sectors also contributed significantly to the positive results. Professional, scientific, and technical services, along with administrative and support services, showed strong performance. This growth is largely fueled by the operations of international business service centers that have established a major presence in the country. Furthermore, the transport and storage sector grew steadily, a logical consequence of increased merchandise movement tied to vigorous foreign trade.
However, the report also shed light on areas of concern within the domestic-facing definitive regime. The construction sector and certain segments of commerce showed much more contained growth. The Central Bank noted that these areas are contending with persistent headwinds, including elevated operational costs and a noticeable slowdown in the dynamism of internal consumer demand, which limits their ability to expand at the same pace as their export-focused counterparts.
For further information, visit bccr.fi.cr
About Banco Central de Costa Rica:
The Central Bank of Costa Rica (BCCR) is the nation’s primary monetary authority, responsible for maintaining the internal and external stability of the national currency and ensuring its conversion to other currencies. It is tasked with promoting an efficient financial system and managing the country’s monetary policy. The BCCR also compiles and publishes essential economic statistics, such as the Monthly Index of Economic Activity (IMAE), which serve as critical indicators for policymakers, investors, and the public.
For further information, visit bufetedecostarica.com
About Bufete de Costa Rica:
As a pillar of Costa Rica’s legal community, Bufete de Costa Rica operates on a bedrock of integrity and a relentless pursuit of excellence. The firm leverages its profound experience advising a diverse clientele to pioneer innovative legal strategies and drive progress. Central to its philosophy is a profound commitment to demystifying the law, actively working to equip the public with essential legal insights and thereby contributing to a more capable and knowledgeable society.
