Changes

After four years of slow economic growth, the Costa Rican economy grew at nearly 5% in 2006. Compared with its Central American neighbors, Costa Rica has achieved a high standard of living, with a per capita income of about U.S. $5,100, and an unemployment rate of 6.6%. During 2006 the annual inflation rate dropped into the single digits (9.43%) for only the third time in the last 28 years; proof that the Costa Rican Government is seriously trying to reduce its large fiscal deficit.  

After four years of slow economic growth, the Costa Rican economy grew at nearly 5% in 2006. Compared with its Central American neighbors, Costa Rica has achieved a high standard of living, with a per capita income of about U.S. $5,100, and an unemployment rate of 6.6%. During 2006 the annual inflation rate dropped into the single digits (9.43%) for only the third time in the last 28 years; proof that the Costa Rican Government is seriously trying to reduce its large fiscal deficit.  

Implementing CAFTA-DR, passing fiscal reform, and creating an effective concessions process are the biggest challenges for the country's economic policymakers. Costa Rica ranks 105th out of 175 countries in the World Bank’s 2006 Doing Business Index. This hampers the flow of investment and resources badly needed to repair and rebuild the country's deteriorated public infrastructure.  

Implementing CAFTA-DR, passing fiscal reform, and creating an effective concessions process are the biggest challenges for the country's economic policymakers. Costa Rica ranks 105th out of 175 countries in the World Bank's 2006 Doing Business Index. This hampers the flow of investment and resources badly needed to repair and rebuild the country's deteriorated public infrastructure.  

Costa Rica's major economic resources are its fertile land and frequent rainfall, its well-educated population, and its location in the Central American isthmus, which provides easy access to North and South American markets and direct ocean access to the European and Asian Continents. One-fourth of Costa Rica's land is dedicated to national forests, often adjoining picturesque beaches, which has made the country a popular destination for affluent retirees and eco-tourists.  

Costa Rica's major economic resources are its fertile land and frequent rainfall, its well-educated population, and its location in the Central American isthmus, which provides easy access to North and South American markets and direct ocean access to the European and Asian Continents. One-fourth of Costa Rica's land is dedicated to national forests, often adjoining picturesque beaches, which has made the country a popular destination for affluent retirees and eco-tourists.  

*Trade (2006 est.): Exports--$7.931 billion: bananas, pineapples, coffee, melons, ornamental plants, sugar, textiles, electronic components, medical equipment. Major markets—U.S. 42.6%, Hong Kong 6.9%, Netherlands 6.4%, Guatemala 4.2%. Imports--$10.88 billion: raw materials, consumer goods, capital equipment, petroleum. Major suppliers—U.S. 41.3%, Japan 5.6%, Venezuela 4.8%, Mexico 4.8%, Ireland 4.3%, Brazil 4.2%, China 4.2%.  

*Trade (2006 est.): Exports--$7.931 billion: bananas, pineapples, coffee, melons, ornamental plants, sugar, textiles, electronic components, medical equipment. Major markets—U.S. 42.6%, Hong Kong 6.9%, Netherlands 6.4%, Guatemala 4.2%. Imports--$10.88 billion: raw materials, consumer goods, capital equipment, petroleum. Major suppliers—U.S. 41.3%, Japan 5.6%, Venezuela 4.8%, Mexico 4.8%, Ireland 4.3%, Brazil 4.2%, China 4.2%.  

Costa Rica has oil deposits off its Atlantic Coast, but the Pacheco administration (2002-2006) decided not to develop the deposits for environmental reasons. The country’s mountainous terrain and abundant rainfall have permitted the construction of a dozen hydroelectric power plants, making it largely self-sufficient in electricity, but it is completely reliant on imports for liquid fuels. Costa Rica has the potential to become a major electricity exporter if plans for new generating plants and a regional distribution grid are realized. Mild climate and trade winds make neither heating nor cooling necessary, particularly in the highland cities and towns where some 90% of the population lives.  

Costa Rica has oil deposits off its Atlantic Coast, but the Pacheco administration (2002-2006) decided not to develop the deposits for environmental reasons. The country's mountainous terrain and abundant rainfall have permitted the construction of a dozen hydroelectric power plants, making it largely self-sufficient in electricity, but it is completely reliant on imports for liquid fuels. Costa Rica has the potential to become a major electricity exporter if plans for new generating plants and a regional distribution grid are realized. Mild climate and trade winds make neither heating nor cooling necessary, particularly in the highland cities and towns where some 90% of the population lives.  

Costa Rica's public infrastructure has suffered from a lack of maintenance and new investment. The country has an extensive road system of more than 30,000 kilometers, although much of it is in disrepair. Most parts of the country are accessible by road.  

Costa Rica's public infrastructure has suffered from a lack of maintenance and new investment. The country has an extensive road system of more than 30,000 kilometers, although much of it is in disrepair. Most parts of the country are accessible by road.