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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.

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