Costa Rica is a small country, but it has big economy potentials that place it on the number eleven position of the largest economies of Latin America. Tourism, Agriculture and the technological services have placed Costa Rica in the top positions. Over the past ten years, poverty has been reduced. During the 90’s, poverty levels were between 21% and 22%, while nowadays the index has dropped down to 16.7%, and the economic growth has gone from 0% to approximately 7%, registered in the past few years.
Costa Rica Economic Indicators
Something that has influenced with the growth of the economy in the country is the commercial relation with several countries that have become important markets for Costa Rica. The commercial free trade agreements with all these countries also generate favorable conditions for commercialization. Costa Rica has free trade agreements with Canada (since 2002), China (since 2002), Dominican Republic (since 2002), with countries that are associated with the Common Market since 1963 (Guatemala, El Salvador, Honduras and Nicaragua). Some other countries with which Costa Rica has agreements are Mexico since 1995, Panama since 1973 and the USA, started in 2009. Currently, free trade agreements are also being negotiated with the European Union and China.
From 1997, the economic growth has increased. Exports through the Free Zone, and Tourism are both the best incomes for the country.
Exports started with the elaboration of microprocessors by INTEL that represent a 20% of the exports, and products such as pineapple, bananas, coffee, cocoa, sugar and meats. Generally speaking, the country from which Costa Rica imports the most is the USA with approximately 44%, the European Union with 17%, the Caribbean countries through the CARICOM agreement with 14%, Mexico 3% and the rest of the countries 21%. In the last few months, China has become the second largest commercial partner for Costa Rica.
In regards to the exports, they are mainly microprocessors, canned food, textiles, materials for construction, plastic products, electric components, medical equipment, among others. Another important product is the electric energy – approximately 115 millions kwh annually.
In regards to the imports, the main products are crude oil, raw materials and consumer goods. The most important countries for imports are the USA, Japan and Mexico. Nowadays, China has also been added to the list.
Also, the settling of small foreign companies is part of the economic growth due to the production that is generated.
Almost half the national income is due to the 2 million of tourists that visit Costa Rica per year (approximately $1,900 USD per year) The majority of the tourists come from North America; another part of this income belongs to the technological services and the agricultural sector.
