Costa Rica Facts and Figures

Costa Rica, located in Central America, borders Nicaragua to the north, Panama to the southeast, and the Pacific Ocean to the west and south, while the Caribbean Sea lies to the east. Its capital, San José, serves as the political and cultural center. The country is renowned for its biodiversity, featuring over 500,000 species of flora and fauna, making it a hotspot for ecotourism. Costa Rica joined the United Nations in 1945 and the Organization of American States in 1948, emphasizing its commitment to international cooperation and peace. The nation is also recognized for abolishing its army in 1949, redirecting funds toward education and health, which has contributed to high literacy rates and a well-developed social welfare system.

Transformative Events

Costa Rica's political landscape has experienced significant events that shaped its current structure. The most impactful was the 1948 civil war, which led to the establishment of a democratic government and the aforementioned abolition of the military. This war stemmed from longstanding political strife between the Liberal and Conservative parties. In the following decades, Costa Rica focused on social reforms, prioritizing education, health care, and environmental conservation. The adoption of progressive policies facilitated its economic growth and stability, making it a model for sustainable development in the region. Today, Costa Rica is recognized for its stable democracy and efforts in environmental preservation, showcasing the lasting impact of its transformative historical events on its national identity and global standing.

Demographic Overview

Costa Rica's population reached 5,212,173 in 2023, with a population density of 101 people per square kilometer as of 2021. The country's demographic structure shows promising characteristics, with 69% of the population being of working age in 2022. The median age of 34 years in 2024, coupled with a life expectancy of 77 years in 2022, indicates a balanced age distribution combining youthful dynamism with longevity. The nation's health indicators demonstrate positive outcomes, with an infant mortality rate of 6.9 per 1,000 live births and a crude death rate of 7.1 per 1,000 persons in 2022. The fertility rate stands at 1.5 children per woman in 2022, following global trends toward smaller family units. The country's predominantly urban character is evident in its 82.6% urbanization rate in 2023, while the modest annual population growth rate of 0.6% in 2023 suggests controlled demographic expansion.

Economic Overview

Costa Rica's economy demonstrates remarkable resilience and measured development in recent years. The nation's Gross Domestic Product (GDP) reached $86.5 billion in 2023, securing its position as the 71st largest economy globally. With a growth rate of 4.6%, the country has shown significant economic recovery following the global pandemic disruption. The monetary landscape remains particularly stable, as evidenced by the controlled inflation rate of 0.5% in 2023, with projections indicating a further decline to 0.3% in 2024. The trade environment presents both opportunities and challenges, with exports valued at $19.0 billion and imports at $24.0 billion, resulting in a trade deficit of $5.0 billion. Labor market conditions have improved substantially, with unemployment decreasing from 11.3% in 2022 to 8.3% in 2023. The economic structure reveals a mature, service-oriented economy where the services sector dominates at 67.3% of GDP, while industry contributes 20.6%, and agriculture accounts for 4.1% as of 2022. Understanding these economic indicators provides vital insights for organizations aiming to expand in the Costa Rican market. Further market research in Costa Rica can help businesses navigate these dynamics effectively and identify promising opportunities across various sectors.

Fiscal Health

Costa Rica’s public finance has modest external support, with net official development assistance (ODA) at 1.0% of GNI in 2022. The country has had fiscal problems in recent years, with net lending/borrowing at -2.81% of GDP in 2022 and -3.17% in 2023, so more deficits. In debt, Costa Rica’s general government debt was 64.29% of GDP in 2022 and central government debt has grown significantly over the past 10 years, from 33.75% of GDP in 2012 to 63.85% in 2022.

Conclusion

Costa Rica's diverse demographics, robust digital usage, and stable political environment create a fertile ground for business opportunities. To harness these potential advantages, a thorough understanding of the market dynamics is essential. Engaging in market research in Costa Rica allows you to critically analyze consumer behavior, identify emerging trends, and assess the competitive landscape. By leveraging local expertise and data-driven insights, you can strategically navigate the complexities of the Costa Rican market, make informed decisions, and align their strategies with the evolving needs of the population.