No menu items!

COSTA RICA'S LEADING ENGLISH LANGUAGE NEWSPAPER

HomeCosta RicaIMF Forecasts Costa Rica to Outpace Most Central American Economies

IMF Forecasts Costa Rica to Outpace Most Central American Economies

Costa Rica is projected to experience solid economic growth in 2025, with forecasts pointing to a moderate slowdown but still strong performance compared to many regional peers. According to the International Monetary Fund (IMF), Costa Rica’s GDP growth is expected to be around 3.4% to 3.5% this year, supported by robust fundamentals, sound policies, and a diverse economic base.

This anticipated growth rate marks a slight moderation from the higher rates seen in recent years, where Costa Rica averaged over 5% growth annually since 2021. The slowdown reflects global and regional headwinds, including weaker external demand, tighter global financial conditions, and increased policy uncertainty.

Despite these challenges, the country’s strategic location, strong export sectors, particularly in technology and business services, and economic diversification are expected to sustain continued growth momentum.

Costa Rica’s fiscal situation has improved, with public debt declining steadily below 60% of GDP and ongoing fiscal consolidation efforts. Inflation is forecast to moderate and align with the Central Bank’s target near 3% by 2026. Our country has also secured a $1.5 billion flexible credit line from the IMF, providing a buffer against external shocks, underlining strong policy frameworks and economic resilience.

Key sectors driving growth include financial services, agriculture, construction, and the service sector, notably high-value industries like technology, business process outsourcing, and tourism. Free trade zones remain vital, attracting foreign investment and supporting export growth.

While growth is expected to be positive, risks remain on the downside from external pressures such as US economic slowdown, tariff impacts, and global uncertainties. Nevertheless, Costa Rica stands out in Central America for its strong economic fundamentals and steady policy progress, positioning it well to maintain its role as a leading regional economy in 2025.

This growth forecast contrasts with some of our neighboring countries facing more significant economic challenges, highlighting Costa Rica’s relative stability and resilience in a complex global environment.

Of course, our country faces ongoing challenges, including managing public spending and expanding opportunities for broad-based economic participation, but its outlook for 2025 remains generally optimistic and more favorable than other Central American nations.

Trending Now

Guatemala Dismantles Los Moisés Migrant Smuggling Network Targeting US Border

Guatemalan officials arrested 14 people tied to a migrant smuggling operation aimed at the United States, striking a blow to illegal crossings in Central...

Costa Rica is a Leading Digital Nomad Destination in 2026

Costa Rica was given a spot among the world's leading destinations for remote workers looking ahead to 2026. According to recent Google search trends,...

Costa Rica Biologists Identify New Insect Species in Museum Collections

Biologists at the University of Costa Rica have uncovered 16 new species of leafhoppers after examining insect collections that sat untouched in museums for...

Emiliana Arango Rises as Latin American Tennis Leader at Australian Open

For years, Latin American tennis followers have turned to a handful of familiar names when scanning Grand Slam draws for women’s singles contenders. Brazil’s...

How Costa Rica’s 2026 Tax Changes Benefit Digital Nomads and Expats

Independent workers across Costa Rica will soon have a simpler way to handle their income taxes. Starting January 1, 2026, a reform to the...

Costa Rica’s Zapote Festival Returns: Dates, Times and Music Lineup

The Fiestas de Zapote draw thousands each year to celebrate the end of one year and the start of another. For visitors to Costa...
Costa Rica Coffee Maker Chorreador
Costa Rica Coffee Maker Chorreador
Costa Rica Travel Insurance
Costa Rica Travel

Latest News from Costa Rica