Your partner for success

Costa Rica
Chamber of Commerce Country Factsheet Last update: 26.09.2017

Your advisors at the Chamber of Commerce

  • Violaine Mathurin
    +352423939481
  • Sabrina Aksil
    +352423939374
Contact us: latinamerica@cc.lu

Key Indicators

Area
51,100 km2
Population
4,814,144 (July 2015 est.)
Government type
democratic republic
Languages
Spanish (official), English
GDP
$74.89 billion (2015 est.)
Growth rate
3.7% (2015 est.)
HDI
69
Capital
San Jose

 

Introduction

Although explored by the Spanish early in the 16th century, initial attempts at colonizing Costa Rica proved unsuccessful due to a combination of factors, including: disease from mosquito-infested swamps, brutal heat, resistance by natives, and pirate raids. It was not until 1563 that a permanent settlement of Cartago was established in the cooler, fertile central highlands. The area remained a colony for some two and a half centuries. In 1821, Costa Rica became one of several Central American provinces that jointly declared their independence from Spain. Two years later it joined the United Provinces of Central America, but this federation disintegrated in 1838, at which time Costa Rica proclaimed its sovereignty and independence. Since the late 19th century, only two brief periods of violence have marred the country's democratic development. In 1949, Costa Rica dissolved its armed forces. Although it still maintains a large agricultural sector, Costa Rica has expanded its economy to include strong technology and tourism industries. The standard of living is relatively high. Land ownership is widespread.

Source: The CIA World Factbook - Costa Rica

 

Macroeconomic indicators

After weak growth last year, activity is set to accelerate in 2016-17. Domestic demand is projected to be the main driver, but exports will also recover as world markets regain momentum. The unemployment rate is likely to remain above 9%. After falling temporarily into negative territory at the end of 2015, inflation will slowly return to the central bank’s target as the economy strengthens.

Public debt has continued to increase and reached 42.4% of GDP in 2015. With credit rating agencies having a negative outlook and bond investors requiring high risk spreads, measures to restore fiscal sustainability have become urgent. The reforms proposed by the government, if approved and implemented, would be just enough to stabilise the debt-to-GDP ratio at the current level. But additional measures, such as further tax reform and reforming public employment, will be needed to ensure more robust debt sustainability.

Disappointing labour productivity growth calls for measures to promote innovation, competition and transport infrastructure. Such reforms need to go together with making Costa Rica a more inclusive society by improving the quality of education and reducing gender inequalities.

Source: OECD Economic Forecast 

IMF Statistics:

Subject descriptor20142015201620172018
Gross domestic product, constant prices
Percent change
2.9653.6754.2504.2504.400
Gross domestic product, current prices
U.S. dollars (Billions)
49.60452.89857.68961.53465.872
Gross domestic product per capita, current prices
U.S. dollars (Units)
10,350.08410,904.77211,749.32612,381.76913,095.412
Inflation, average consumer prices
Percent change
4.5180.8020.7042.6293.000
Volume of imports of goods and services
Percent change
6.1854.4205.3118.0477.965
Volume of exports of goods and services
Percent change
3.0961.8617.1677.3095.235
Unemployment rate
Percent of total labor force
9.4809.2498.2248.1007.916
Current account balance
U.S. dollars (Billions)
-2.340-2.093-2.570-2.785-2.950
Current account balance
Percent of GDP
-4.717-3.957-4.455-4.526-4.478
Colored cells are estimates

Source : IMF Statistics

 

Luxembourg and the country

Existing conventions and agreements

Non double taxation agreement 

In order to promote international economic and financial relations in the interest of the Grand Duchy of Luxembourg, the Luxembourg government negotiates bilateral agreements for the avoidance of double taxation and prevent fiscal evasion with respect to Taxes on Income and on fortune with third countries.

None

Air Services agreement

- Agreement from 09.06.1961 (Memorial 1965, A, p. 294 )
- Effective as of 07.07.1967 (Memorial 1967, A, p. 898)
- Additional Protocol from 02.12.1962 (Memorial 1965, A, p. 294 )
- Effective as of 07.07.1967 (Memorial 1967, A, p. 898)

Source: Administration des contributions directes

 

Further information

Foreign Trade

The Statec Foreign Trade statistics provide information on the trade of goods - by product and by country. This information is collected respectively through the INTRASTAT declaration and on the basis of customs documents.

You can see the statistics on the website of the Statec.

Contact points for Costa Rica

Honorary consul with jurisdiction of Costa Rica :

Mr. Robert FEDERSPIEL PINTO

Liberia Universal
Avenida Central, Calle 1era
AP 1532-1000 San José
T: +506 2243 0221
M: +506 2243 0246
E-mail: rfederspiel@guniversalcr.com

Economic and Commercial Attaché (AWEX):  

Bernard GEENEN 

3330 Garfield Street NW
Washington, DC 20008-5852

Tel: 1-202-625.58.52
Fax: 1-202-625.62.52

E-mail: washington(at)awex-wallonia.com

Source: www.awex.com 

Country risk as defined by Office du Ducroire for Costa Rica

Ducroire is the only credit insurer covering open account deals in over 200 countries. A rating on a scale from 1 to 7 shows the intensity of the political risk. Category 1 comprises countries with the lowest political risk and category 7 countries with the highest. Macroeconomics experts also assess the repayment climate for all buyers in a country.

Link: http://www.ducroire.lu/en/node/41?country=63

Other useful links: