Costa Rica

With the decline of the United Provinces of Central America in 1838, Costa Rica declared its sovereignty. With the exception of 1917-19, and 1948, Costa Rica has experienced democracy since 1899. After the 1948 revolution, and the civil war that followed, a new constitution was created including free elections. Jose FIGUERES declared victory in the 1953 elections. Fourteen presidential elections have followed. Oscar ARIAS won the 2006 presidential elections and pledged to eliminate government corruption and bring stability to the economy. Costa Rica has a high standard of living, and strong technology, and tourism sectors.

Main Airports

Juan Santamaría (SJO)

U.S. Embassy

Pavas at Boulevard Pavas and Calle 120, San Jose
Tel. (506) 519-2000

Statistics

GDP: purchasing power parity:

$44.68 billion (2005 est.)

GDP - real growth rate:

4% (2005 est.)

GDP - per capita: purchasing power parity:

11,100 (2005 est.)

Inflation rate (consumer prices):

13.8% (2005 est.)

Labor force:

1.82 million (2005 est.)

Exports:

$7.005 billion (2005 est.)

Exports - partners:

US 29.8%, Netherlands 14.2%, UK 8.4%, China 7.6% (2005)

Imports:

$9.69 billion (2005 est.)

Imports - partners:

US 43.4%, Japan 5.8%, Mexico 5.3%, Venezuela 4.9%, Brazil 4.4% (2005)

Population:

4,075,261 (July 2006 est.)

Population growth rate:

1.45% (2006 est.)

Population Below Poverty Line:

18% (2004 est.)

Major Industries:

microprocessors, food processing, textiles and clothing, construction materials, fertilizer, plastic products

Employing Workers: 65*

Registering Property: 37*

Enforcing Contracts: 114*

Closing a Business: 118*

*2006 World Bank rank out of 175 countries

Starting a Business

The table below shows the number of steps and the amount of time needed to start a business, on average

Indicator	Costa Rica	Region
Procedures (number)	11	10.2
Time (days)	77	73.3

Costa Rica Risk Assessment

Country Rating

Rating: A4

A somewhat shaky political and economic outlook and a relatively volatile business environment can affect corporate payment behaviour. Corporate default probability is still acceptable on average.

Risk Assessment

The country's economic and financial outlook has improved with the approval end 2007 in Costa Rica of DR-CAFTA, the free trade agreement between the Central American countries and the United States. Foreign investors, already attracted by the country's stable political institutions, good social indicators, and a satisfactory business environment, should benefit from the liberalisation of the electricity, telecommunications, and insurance sectors.

Growth should remain relatively strong amid strong consumption and investment. A persistent fiscal deficit is attributable to the narrowness of the tax base and the rigidity of public spending, while the still-pending fiscal reform would contribute to reducing the public debt burden (45 per cent of GDP in 2007 and half denominated in foreign currencies). Although external accounts ought to benefit from the good performance of technological-product exports and tourism revenues, they have suffered from the extent of oil purchases and profit repatriation by multinationals, with the net result of a substantial current account deficit. The influx of foreign direct investment should, however, largely cover external financing needs. Foreign debt ratios will moreover remain moderate and the adoption of a more flexible foreign exchange system will allow the Central Bank to exercise better control over inflation. Although the banking system is still weakened by extensive dollarisation, oversight and performance have improved.

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• Bags, Cases & Boxes
• Chemicals
• Computer Hardware & Software
• Construction & Real Estate
• Consumer Electronics
• Electrical & Electronics
• Energy & Environment
• Food & Beverage
• Furniture & Furnishing
• Health & Medicine
• Home Supplies
• Industrial Supplies
• Lights & Lighting
• Machinery
• Mineral & Materials
• Office Supplies
• Security & Protection
• Service
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• Telecommunications
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• Toys
• Transportation