The Central Bank of Costa Rica (BCCR) released its January Monetary Policy Report, forecasting a 4.1% economic growth for 2025. This is an improvement from the previous estimate of 3.9%. This figure compares to the expected 4.3% growth for 2024, while a slight slowdown to 4% is anticipated for 2026.
Country’s growth
Costa Rica’s growth will continue to be driven by domestic demand and foreign direct investment (FDI), which remain key factors in the economic expansion. In fact, FDI is at its highest point in history, with an average post-pandemic growth of 4% per year. The latest value reported by the World Bank for 2023 is €4.67 billion.
However, the BCCR warns that external risks, such as geopolitical tensions, global trade disputes, and extreme weather events, could impact these projections. Despite this, its GDP continues to grow significantly; as according to World Bank data, its value was $86.10 billion (€82.5 billion) in 2023.
Inflation expectations
Inflation is expected to remain low, within the target range of 2% to 4%. This objective is expected to be achieved by the third quarter of 2025. Furthermore, the national currency, the Costa Rican colon, is showing signs of strengthening, reaching its highest point in history.
This stability is likely to support economic momentum and maintain favorable conditions for the country’s development. Costa Rica is an attractive destination for investment due to its strategic location, making it an ideal nearshoring hub, situated between the Caribbean Sea and the Pacific Ocean, and adjacent to Panama.
Therefore, if you are looking to internationalize or expand your business in the Americas, starting in this country is ideal. If you want to enter this market, do not hesitate to contact Auxadi to manage your company’s accounting, tax payments and payroll in Costa Rica.
Can Auxadi help?
Auxadi can become your ideal partner. We offer a one stop shop value added outsourcing services in the areas of accounting and reporting, tax compliance, payroll management and representation services, among others.
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All information contained in this publication is up to date on 2024. This content has been prepared for general guidance on matters of interest only, and does not constitute professional advice. You should not act upon the information contained in this chart without obtaining specific professional advice.No representation or warranty (express or implied) is given as to the accuracy or completeness of the information contained in this content, and, to the extent permitted by law, AUXADI does not accept or assume any liability, responsibility or duty of care for any consequences of you or anyone else acting, or refraining to act, in reliance on the information contained in this chart or for any decision based on it.