Costa Rica's Central Government Debt (% of GDP), 1990-2022

Costa Rica’s debt levels increased steadily from 18.54% in 1990 to 41.44% in 2002 due to persistent fiscal deficits and reliance on external financing. Debt stabilization efforts in the mid-2000s brought levels down to 24.01% by 2008, reflecting strong economic growth and fiscal discipline.

The trend reversed post-2008, with debt surging to 68.1% in 2021, driven by higher spending and the economic fallout from the COVID-19 pandemic. By 2022, debt slightly decreased to 63.85%, marking initial recovery steps. Costa Rica’s fiscal trajectory highlights challenges in balancing public spending with sustainable debt levels.