Costa Rica

Nicole Mahmood

Overall Score: 67.2 World Rank: 51

Costa Rica Quick Facts/United States

  • Population: $4.8 million/$316.4 million
  • GDP: $61.6 billion/$16.8 trillion
  • GDP Growth: 3.5%/1.9%
  • GDP per capita: $12,942/$53,101
  • Unemployment: 7.7%/7.5%
  • Inflation: 5.2%/1.5%
  • Foreign Direct Investment: $2.7 billion/$187.5 billion
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Legal System

A legal system is a procedure or process for interpreting and enforcing the law. Property rights are an important factor of a legal system. In Costa Rica, the court system is not very efficient and cases can be delayed. Corruption can occur, and the justice branch can be influenced by other branches of the government.

Competitive Markets

Costa Rica has a healthy competitive market. Its economy has developed to reach out globally as well as domestically. The government has a limited economic presence, which allowed the business in Costa Rica to flourish. the economy is focused on tourism, agriculture, and technology.

Limits on Government Regulation

Business freedom indicates how efficiently a government regulates business. On a scale of 1 to 100, Costa Rica scored a 64.5. This means that the country has a relative free business environment.

An Efficient Capital Market

In Costa Rica, the financial sector has become more and more open to competition. State-owned banks mostly dominate the sector, though. The capital markets are still not completely developed.

Monetary stability

Costa Rica is mainly monetarily stable. GDP has grown 3.4% over 5 years. This has reversed a multi-year decline. Monetary stability has declined over the years.

Low Tax Rates

Government spending refers to the total government expenditures. Government spending is high in Costa Rica. It accounts for about 18.3% of the gross domestic product.

Free Trade

Trade freedom is an average of tariff barriers and non-tariff barriers on goods that are imported and exported from the country. On a scale of 1 to 100, Costa Rica scored an 83.8. This means this country has a mostly free trade system. Costa Rica's average tariff rate is 3.1%.
Costa Rica - Economy

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Costa Rica has been improving its economy to expand globally. It focuses on using human resources as the main source of its economic progress.

Extra Credit

  • The average Costa Rican makes $6,000 a year and the average wage labor is $10 per day, the highest in Central America.
  • $1.92 billion dollar tourism industry.
  • Primarily a producer of bananas and coffee.