Costa Rica Economy 2007

Economy - overview:
Costa Rica's basically stable economy depends on tourism, agriculture, and electronics exports. Poverty has remained at roughly 20% for nearly 20 years, and the strong social safety net that had been put into place by the government has eroded due to increased financial constraints on government expenditures. Immigration from Nicaragua has increasingly become a concern for the government. The estimated 300,000-500,000 Nicaraguans estimated to be in Costa Rica legally and illegally are an important source of (mostly unskilled) labor, but also place heavy demands on the social welfare system. Foreign investors remain attracted by the country's political stability and high education levels, and tourism continues to bring in foreign exchange. The government continues to grapple with its large internal and external deficits and sizable internal debt. Reducing inflation remains a difficult problem because of rising import prices, labor market rigidities, and fiscal deficits. The country also needs to reform its tax system and its pattern of public expenditure. The current administration has made it a priority to pass the necessary reforms to implement the US-Central American Free Trade Agreement (CAFTA). CAFTA implementation would result in an improved investment climate.

GDP (purchasing power parity):
$50.89 billion (2006 est.)

GDP (official exchange rate):
$21.39 billion (2006 est.)

GDP - real growth rate:
7.9% (2006 est.)

GDP - per capita (PPP):
$12,500 (2006 est.)

GDP - composition by sector:
agriculture: 8.7%
industry: 28.9%
services: 62.4% (2006 est.)

Labor force:
1.874 million
note: this official estimate excludes Nicaraguans living in Costa Rica (2006 est.)

Labor force - by occupation:
agriculture: 20%
industry: 22%
services: 58% (1999 est.)

Unemployment rate:
6.6% (2006 est.)

Population below poverty line:
18% (2004 est.)

Household income or consumption by percentage share:
lowest 10%: 1%
highest 10%: 37.4% (2003)

Distribution of family income - Gini index:
49.8 (2003)

Inflation rate (consumer prices):
11.5% (2006 est.)

Investment (gross fixed):
19.9% of GDP (2006 est.)

Budget:
revenues: $3.129 billion
expenditures: $3.282 billion (2006 est.)

Public debt:
51.8% of GDP (2006 est.)

Agriculture - products:
bananas, pineapples, coffee, melons, ornamental plants, sugar, corn, rice, beans, potatoes; beef; timber

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

Industrial production growth rate:
8.4% (2006 est.)

Electricity - production:
8.349 billion kWh (2005)

Electricity - consumption:
7.776 billion kWh (2005)

Electricity - exports:
70 million kWh (2005)

Electricity - imports:
81 million kWh (2005)

Oil - production:
0 bbl/day (2004)

Oil - consumption:
44,000 bbl/day (2004 est.)

Oil - exports:
NA bbl/day

Oil - imports:
NA bbl/day

Oil - proved reserves:
0 bbl (1 January 2006)

Natural gas - production:
0 cu m (2005 est.)

Natural gas - consumption:
0 cu m (2005 est.)

Current account balance:
$-1.077 billion (2006 est.)

Exports:
$8.238 billion (2006 est.)

Exports - commodities:
bananas, pineapples, coffee, melons, ornamental plants, sugar; textiles, electronic components, medical equipment

Exports - partners:
US 27.4%, Netherlands 12.2%, China 11.7%, UK 6.2%, Mexico 5.8% (2006)

Imports:
$10.84 billion (2006 est.)

Imports - commodities:
raw materials, consumer goods, capital equipment, petroleum

Imports - partners:
US 41.2%, Venezuela 5.4%, Mexico 5.2%, Ireland 5%, Japan 4.9%, Brazil 4.3%, China 4.1% (2006)

Reserves of foreign exchange and gold:
$3.115 billion (2006 est.)

Debt - external:
$6.332 billion (2006 est.)

Stock of direct foreign investment - at home:
$6.897 billion (2006 est.)

Stock of direct foreign investment - abroad:
$261.3 million (2006 est.)

Market value of publicly traded shares:
$1.478 billion (2005)

Currency (code):
Costa Rican colon (CRC)

Exchange rates:
Costa Rican colones per US dollar - 511.3 (2006), 477.79 (2005), 437.91 (2004), 398.66 (2003), 359.82 (2002)