Costa Rica’s economic growth rate slowed to 3.9% in the first quarter of 2025, down from 4.6% during the same period last year, according to new figures released by the Central Bank of Costa Rica (BCCR). The drop is largely attributed to setbacks in two major sectors: agriculture and hospitality. Agricultural production, which had posted a 4.7% increase in early 2024, contracted by 4.3% this year.
The decline is tied to unseasonably heavy rains at the end of 2024 and the beginning of 2025, which damaged short-cycle crops including onions, potatoes, vegetables, and tubers. The hotel and restaurant sector—second only to business services in growth last year—also stalled. After expanding by 7.2% in the first quarter of 2024, the sector recorded just 0.1% growth in 2025.
Tourism numbers reflect the slowdown. Data from the Costa Rican Tourism Institute (ICT) shows 850,329 tourists arrived by air between January and March 2025, compared to 884,264 during the same period in 2024. Foreign exchange earnings from tourism dropped by $60 million year-over-year in the first quarter.
Several factors are contributing to the downturn. The appreciation of the Costa Rican colón—now around ₡500 to the U.S. dollar, compared to ₡700 in mid-2022—has made the country more expensive for international travelers. The tourism industry is also contending with safety concerns following a U.S. Embassy travel advisory in late 2024 that cited rising crime rates, particularly in areas near Juan Santamaría International Airport. Additionally, U.S. airline seat capacity to Costa Rica fell by 10% in early 2025, further restricting access for North American visitors.
Flora Ayub, executive director of the Costa Rican Chamber of Hotels, said the situation is putting immense pressure on businesses. “There are many contributing factors,” Ayub said. “For both Costa Ricans and foreigners, it has become very expensive to travel to and explore Costa Rica.” Mauricio Rodríguez, president of the Costa Rican Chamber of Restaurants (CACORE), described the first quarter of the year as “quite slow” in terms of both customer traffic and revenue. He said the exchange rate is a key issue.
“Restaurants are paying rent in U.S. dollars but earning in colones. That imbalance is forcing consumers to tighten their spending and prioritize other expenses,” Rodríguez said. Despite the mounting challenges, no coordinated government strategy has been announced to support either sector. Tourism accounts for roughly 8.2% of Costa Rica’s GDP and 8.8% of employment. The slowdown is especially concerning for rural regions such as Guanacaste, Limón, and Monteverde, where tourism remains a primary economic driver.
