Costa RicaChapters
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. On 1 December 1948, 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.
Key indicators
- Area
- 51,100 km2
- Population
- 5,151,140 (July 2021 est.)
- Government type
- presidential republic
- Languages
- Spanish (official), English
- GDP
- $61.521 billion (2020 est.)
- Growth rate
- -4.5% (2020 est.)
- HDI
- 62
- Capital
- San Jose
Macroeconomic indicators
Growth is projected to remain solid, supported by strong exports and inflows of foreign direct investment. Domestic investment is set to rebound, driven by public infrastructure projects. Despite robust output growth, unemployment will remain high, reflecting persistent skill mismatches. Inflation will increase, but is projected to stay below 3%.
Restoring sustainable public finances has become more urgent. The continuation of the current piecemeal fiscal consolidation measures will result in a modest improvement in the primary balance but will fail to halt the deteriorating public debt trajectory. This will put upward pressure on interest rates and hurt private investment and growth prospects. As public debt grows, so does the risk that the government becomes unable to meet its financing needs through debt issuances, which would force damaging cuts to the welfare system and threaten macroeconomic stability. Structural reforms to reduce informality, improve education, address infrastructure gaps and strengthen competition would boost productivity and inclusive growth.
Source: OECD Economic Forecast
IMF Statistics:
| Subject descriptor | 2018 | 2019 | 2020 | 2021 | 2022 |
|---|---|---|---|---|---|
|
Gross domestic product, constant prices Percent change |
2.634 |
2.025 |
2.528 |
2.799 |
2.961 |
|
Gross domestic product, current prices Percent change (Billions) |
60.464 |
61.021 |
65.179 |
68.636 |
72.265 |
|
Gross domestic product per capita, current prices Percent change (Units) |
12,039.107 |
12,014.795 |
12,690.589 |
13,214.903 |
13,758.789 |
|
Inflation, average consumer prices Percent change |
2.220 |
2.735 |
3.113 |
3.000 |
3.000 |
|
Volume of imports of goods and services Percent change |
0.081 |
1.517 |
4.655 |
4.369 |
4.259 |
|
Volume of exports of goods and services Percent change |
4.223 |
3.881 |
5.102 |
4.625 |
4.348 |
|
Unemployment rate Percent change |
11.951 |
11.500 |
11.000 |
10.500 |
10.000 |
|
Current account balance Percent change (Billions) |
-1.877 |
-1.455 |
-1.601 |
-1.780 |
-2.006 |
|
Current account balance Percent change |
-3.104 |
-2.384 |
-2.456 |
-2.593 |
-2.775 |
Estimates
Source : IMF Statistics
Relationships with Luxembourg
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)
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 Consuls
Honorary consul with jurisdiction overCosta Rica: Mr Robert FEDERSPIEL PINTO
Liberia Universal
Avenida Central, Calle 1era
AP 1532-1000 San José
Costa Rica
Tel.: +506 2243 0221 / +506 2243 0246
E-Mail: rfederspiel@guniversalcr.com
Source: Ministry of Foreign Affairs of Luxembourg
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:
- CIA World factbook on Costa Rica
- ELAN biz: European and Latin American Business services
- ELAN Network: European and Latin American Technology based Business network
- The Latin America IPR SME Helpdesk
- le Costa Rica sur le site de l'Awex
- Chamber of Commerce Europe - Central America: Euracen
- Chambre de Commerce et d'Industrie française au Costa Rica
- EU and Central America (website of the European Commission)
- Doing Business in Costa Rica
- Das ist Costa Rica
- Investment Promotion Agency (CINDE)
- Export Promotion Agency (PROCOMER)
- Central American Trade Network