Costa Rica was classified as high yield by the World Bank. Case rare in Latin America, the country reaps fruits from political stability, constant economic growth and low inflation.
Costa Rica was classified in July as a high -income country by the World Bank. The announcement reflects the nation’s sustained economic growth, which reached a raw national yield (RNB) per capita of $ 15,620 in 2024 – above the global average of $ 13,439. The indicator measures the total income generated by all residents and companies in a country and helps to analyze the level of living on site.
The change of level may seem technical, but it has strong political and economic weight: Costa Rica joins a restricted group of Latin American countries, such as the Chile and the Uruguaywith performance above the regional average.
In a context of crises in countries in the region, the Central American country is proof that stability produces results.
The World Bank says that Costa Rica went from the medium-high performance category to that of high yield due to a Strong and consistent growth of Gross Domestic Product (GDP)with an average rate of 4.7%, driven by the strong internal demandwhich combines private consumption and investment.
As countries advance economically, these classifications continue to play a key role in defining development policies and strategies.
“Understanding the factors that influence income classification can guide efforts to stimulate economic growth, help control inflation and improve integration into the global economy,” the institution says in a report.
Political stability, social investment and tourism
Costa Rica benefits from rare political stability in the region. Venezuela, which has been experiencing political turbulence in recent years, for example, was classified as a country of medium-high performance until the 2021 fiscal year and “has not been classified since then due to the unavailability of data.”
“Costa Rica has been harvested from efforts since the end of its last civil war in 1948, when end of the armyin exchange for investments and the strengthening of state -induced social policies, ”says Carolina Silva Pedroso, professor of international relations at the Federal University of São Paulo (Unifesp), who lived in the country.
Political stability and social focus translate into real economic results. According to economist Luis Vargas Montoya, a researcher at the University of Costa Rica, there was a growth of about 10% in exports of specialized manufactures and services in the last five years and, with the French areas, the country attracted up to 20% foreign investment per year No period.
Costa Rica is currently the third country in the world in the ranking of attracting new investments compared to its GDP and the first in Latin America.
“It is precisely the growth of these sectors the main engine of the Costa Rican economy, which led it to increase its per capita performance and change its status on the World Bank scale,” says Montoya. THE inflation in the country should be only 1.6% this year and public debt is below 60%according to the Central Bank of the country.
O turismo It is also an important part of growth, representing 6.3% of GDP between 2023 and 2024, according to the Central Bank and the Costa Rica Tourism Institute (ITCR).
“The population understands that tourism is a source of performance for themselves. It is a charming country. Very similar to Brazil, but very, very preserved and careful. Amazing natural beauties, welcoming people, good food, including vegans, quiet and safe climate.
Thus, the organization’s projection for Economic Cooperation and Development (OECD) is that the Costa Rican GDP will grow 3.5% this year and 3.6% in the next, in a positive cycle for local inhabitants.
“The classification of a country as high income generates external confidence. This can contribute to attracting investment, tourism and retired, which could potentially increase economic growth, ”says Montoya.
But “there are still two Costa Ricas”
In addition to the lessons that Costa Rica offers to Latin America, the country also faces some common problems in various regions of the continent, such as inequality and Dependence on low value exports addedwhich creates vulnerability, given the high dynamic and uncertainty in global value chains.
“Unfortunately, we still have two Costa Rica in many areas, such as production, where the reality of companies in a special regime [zonas francas] With high levels of productivity is very different from that of the companies in prosecution, such as the rest of the economy – for example, the agricultural, commercial and construction sectors, ”says Montoya.
According to the expert, the inequality also manifests itself in education: Those who have complete or higher secondary education, especially technical or university, live in much better conditions than those who have not completed secondary education. In addition, there is Gender disparitieswith women at a disadvantage in the labor market, and old, as there are few opportunities for young people.
“In my opinion, there is an almost total absence of productive policies aimed at sectors and populations with fewer opportunities. The few attempts that have been made lack the minimum conditions that guarantee their viability: budget content, a legal-institutional framework, an operational structure, clear leadership and evaluation mechanisms,” he says.
Gini’s coefficient – which measures inequality in a country, and the smaller, the less unequal – from Costa Rica was 45.8, while Uruguay and Chile were 40.9 and 43.0, respectively, according to the latest data available in the World Bank. Brazil has 51.6 points.
For UNIFESP Carolina Pedroso, this persistent inequality is also reflected in the increase in violence In the country, a theme that has gained prominence in recent years. “This explains, for example, the approach of the government of Rodrigo Chaves, from Costa Rica, Nayib Bukele [presidente de El Salvador]even considering the possibility of hiring the Salvadoran army as a kind of mercenary guard to contain the wave of violence, ”he says.
