The United Nations High Commissioner for Refugees (UNHCR) warns that a 41% funding cut is jeopardizing support for refugees in Costa Rica, especially Nicaraguans fleeing repression. With over 222,000 asylum claims pending, the country’s asylum system is buckling.

Nicaraguans escape political crackdowns, human rights abuses, and economic collapse, sparked by 2018 protests and worsened by 2021 elections. By March, Costa Rica hosted 194,000 Nicaraguan asylum seekers and 9,216 registered refugees, making up 83% of its refugee population and 4% of its 5.1 million people. These numbers cover over half of displaced Nicaraguans worldwide.

“Nicaragua’s crisis pushes thousands to Costa Rica, a country with a strong asylum tradition,” UNHCR says. But funding shortages have slashed cash aid for food and rent, legal help, and mental health support, especially in border towns like Upala. This leaves asylum seekers vulnerable to poverty and exploitation.

Costa Rica has stepped up, expanding its Refugee Unit in Upala and opening healthcare to asylum seekers, but resources are stretched thin. A 77% drop in registration capacity delays work permits, pushing Nicaraguans, Venezuelans, and others into unstable, informal jobs. Nicaraguan refugees, however, contribute by working in coffee fields and construction, boosting local economies.

UNHCR’s $1.5 billion global pledge for 2025 isn’t enough for Costa Rica, where operations were only 46% funded in 2020. The agency needs $40.4 million to keep programs running through 2025. Without it, vital services like child protection, education, and job training—focused on women, children, and remote areas—face cuts, risking regional instability in Central America.

UNHCR is begging governments and private donors to step up. “Costa Rica’s role as a safe haven is at stake,” the agency warns. As our country fights to maintain its commitment to refugees, the international community must act to keep these lifelines alive.

A 10% tariff on imports from Costa Rica, rolled out by the U.S. government in April, could slash the country’s economic growth from 3.6% to 3% in 2025, says the International Center for Economic Policy for Sustainable Development of the National University (CINPE-UNA). This hit stems from Costa Rica’s tight trade ties with the U.S., its top market.

“Costa Rica’s economic future hinges on international trade, the U.S. economy’s performance, and local monetary policy,” the CINPE-UNA report explains. The tariff, part of Donald Trump’s “Liberation Day” policy, targets Costa Rica’s trade deficit with the U.S. A 90-day pause on steeper rates gives Costa Rica time to negotiate, but uncertainty is already chilling business and investment decisions.

Costa Rica sends 48% of its exports to North America, with 44.5% landing in the U.S. Exports to the U.S. grew 7.6% annually over the past 13 years, surging 22.7% in 2023 to $8,141.5 million. The trade deficit—Costa Rica imports more than it exports—prompted the 10% tariff, though it’s milder than rates on countries like China, which face 34%.

The tariff will sting key sectors. Free trade zones, especially medium-tech manufacturing like medical devices, face heavy losses. In the definitive regime, agricultural exports like pineapple, banana, coffee, and cassava will take a hit. These sectors drive jobs and growth, and the tariff could also deter foreign investment in free trade zones, where firms count on easy U.S. market access.

Marco Otoya, CINPE director, notes that U.S. trade policies are dragging Latin America’s growth to 2.5%, with Central America above 3% but slipping. Higher U.S. consumer prices for Costa Rican coffee and pineapples could curb demand, squeezing exporters further. Neighbors like Guatemala and El Salvador brace for similar trade disruptions.

Costa Rica’s Foreign Trade Ministry is negotiating with U.S. officials, banking on the CAFTA-DR free trade agreement to win exemptions. With tariff talks ongoing, Costa Rica fights to protect its economic edge, but the shadow of the tariff looms large over our country’s future.

Costa Rica violated the rights of over 200 migrants deported by the United States—including 81 children—according to a report by the Center for Justice and International Law (CEJIL), the Jesuit Migrant Service (SJM-CR), and the American Friends Service Committee (AFSC). A lawsuit filed before the U.N. claims the detentions risked long-term harm to minors.

The report, based on visits and victim interviews, details how Costa Rica agreed to act as a “bridge” under a U.S.-funded deal, supervised by the IOM, to hold migrants from Russia, Armenia, Afghanistan, Yemen, the Republic of Congo, and other nations. Instead, they faced illegal detentions lasting over 60 days, no information in their languages, and no asylum assessments. “This cannot happen again,” the organizations warned, demanding no similar agreements and better care, work permits, and protection for those affected.

Expelled from the U.S., the migrants were sent to the Temporary Attention Center for Migrants (CATEM) in Paso Canoas near Panama. They faced harsh conditions, including extreme heat, poor food, and children sleeping on cardboard. Documents were withheld, and police escorts restricted movement. “In Costa Rica, they locked us up without explanation,” said an Armenian migrant who requested anonymity. An Iranian woman told advocates she fled persecution for her Christian faith but was denied a U.S. asylum hearing.

An Afghan father shared his fear of returning home, saying, “The Taliban would kill my family if we go back, but we had no chance to explain.” Such stories highlight the diverse dangers migrants faced, yet they received no psychological support or refuge evaluations. Some were pushed toward the IOM’s Assisted Voluntary Return program despite risks, violating non-refoulement principles.

Costa Rica’s actions mirror issues in Panama and El Salvador, where U.S.-deported migrants also face detention. The U.S. has expanded such deals across Central America, affecting thousands seeking safety. On April 21, President Rodrigo Chaves’ government granted temporary humanitarian status to all CATEM detainees, allowing free movement. But the three-month permits offer no work rights, leaving many in limbo. The government defended its role, claiming it followed international protocols, though advocates disagree.

“The measure is late and doesn’t fix the damage,” said Ana Patricia Argüello of SJM-CR. “Many fear persecution if they return home but can’t stay here.” Costa Rica hosts 300,000 migrants (7% of its population), but its asylum system is overwhelmed, handling 70,000 applications in 2024. “If a country like Costa Rica, known for welcoming migrants, fails, what hope is there for others?” asked Laura Garcia of AFSC.

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.

An expedition of marine archaeologists from Denmark has unraveled the mystery surrounding two shipwrecks lying in the shallow waters of Cahuita National Park, on the Caribbean coast of Costa Rica. For nearly two centuries, local fishermen, who first settled in the area in 1826, believed the wrecks were pirate ships.

However, a 2015 discovery of distinctive yellow bricks by U.S. archaeologists from East Carolina University sparked new questions, leading to the revelation that these are the remains of Danish vessels involved in the transatlantic slave trade. The ships, Fridericus Quartus and Christianus Quintus, were part of Denmark’s participation in the trade, which spanned from the 1660s to the early 1800s. During this period, over 120,000 Africans were forcibly transported across the Atlantic under brutal conditions.

Loaded with cloth, metal goods, and weapons for trade, the vessels departed Copenhagen in December 1708, bound for the Danish colony of St. Thomas (now part of the U.S. Virgin Islands) via West Africa. According to the National Museum of Denmark and the Viking Ship Museum, the ships never reached their destination.

During an extensive underwater excavation in 2023, conducted in collaboration with the University of Costa Rica and Costa Rica’s National System of Conservation Areas (SINAC), marine archaeologists recovered fragments of wood, yellow bricks, and Dutch-made clay pipes. Scientific analysis at the University of Southern Denmark determined that the materials correspond to 18th-century European ships, supporting historical records of shipwrecks in the region.

The timber originated from an oak tree felled between 1690 and 1695 in the western Baltic Sea, a region encompassing Denmark, northeastern Germany, and southern Sweden. The yellow bricks match those produced in Flensburg, then a Danish city known for its brick manufacturing. David Gregory, a marine archaeologist at the National Museum of Denmark, noted, “The charred wood and Danish cargo confirm these are the Fridericus Quartus and Christianus Quintus, lost in 1710.”

Investigators revealed that, after a voyage lasting several months, the ships ran out of provisions, exacerbating the suffering of the enslaved Africans onboard. Navigational errors led the vessels over 2,000 kilometers off course. In a state of desperation, the crew and enslaved Africans mutinied in 1710. One vessel was consumed by fire, while the other sank after its anchor was cut.

Of the approximately 650–690 enslaved people who survived, many reached the shores of Costa Rica. Some were recaptured and sent to cacao plantations in Matina, while others escaped and integrated into local communities, contributing to the vibrant Afro-Costa Rican heritage today.

SINAC plans to incorporate these findings into educational programs at Cahuita National Park, ensuring that this significant chapter of history resonates with future generations. The wrecks, restricted to non-invasive tours, remain a protected testament to Costa Rica’s complex colonial past.