Costa Rica Economy – Yahoo! Education

Costa Rica Economy:

Costa Rica's basically stable economy depends on tourism, agriculture, and electronics exports. Poverty has been substantially reduced over the past 15 years, and a strong social safety net has been put into place. Foreign investors remain attracted by the country's political stability and high education levels, and tourism continues to bring in foreign exchange. Low prices for coffee and bananas have hurt the agricultural sector. The government continues to grapple with its large deficit and massive internal debt. The reduction of inflation remains a difficult problem because of rises in the price of imports, labor market rigidities, and fiscal deficits. The country also needs to reform its tax system and its pattern of public expenditure. Costa Rica recently concluded negotiations to participate in the US-Central American Free Trade Agreement, which, if ratified by the Costa Rican Legislature, would result in economic reforms and an improved investment climate.

GDP (purchasing power parity):
$37.97 billion (2004 est.)

GDP — real growth rate:
3.9% (2004 est.)

GDP — per capita:
purchasing power parity: $9,600 (2004 est.)

GDP — composition by sector:
agriculture: 8.5%
industry: 29.7%
services: 61.8%
(2004)

Labor force:
1.81 million (2004 est.)

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

Unemployment rate:
6.6% (2004 est.)

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

Household income or consumption by percentage share:
lowest 10%: 1.1%
highest 10%: 36.8% (2002)

Distribution of family income — Gini index:
45.9 (1997 est.)

Inflation rate (consumer prices):
11.5% (2004 est.)

Investment (gross fixed):
18.3% of GDP (2004 est.)

Budget:
revenues: $2.5 billion
expenditures: $3.09 billion including capital expenditures of NA (2004 est.)

Public debt:
58% of GDP (2004 est.)

Agriculture — products:
Coffee, pineapples, bananas, sugar, corn, rice, beans, potatoes; beef; timber

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

Industrial production growth rate:
3.1% (2004 est.)

Electricity — production:
6.61 billion kWh (2002 est.)

Electricity — consumption:
5.73 billion kWh (2002 est.)

Electricity — exports:
477 million kWh (2002 est.)

Electricity — imports:
59 million kWh (2002 est.)

Oil — production:
0 bbl/day (2001 est.)

Oil — consumption:
37,000 bbl/day (2001 est.)

Oil — exports:
NA

Oil — imports:
NA

Current account balance:
$-980.3 million (2004 est.)

Exports:
$6.18 billion (2004 est.)

Exports — commodities:
coffee, bananas, sugar, pineapples, textiles, electronic components, medical equipment

Exports — partners:
US 46.9%, Netherlands 5.3%, Guatemala 4.4% (2004)

Imports:
$7.84 billion (2004 est.)

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

Imports — partners:
US 46.1%, Japan 5.6%, Mexico 5.1%, Brazil 4.2% (2004)

Reserves of foreign exchange and gold:
$1.74 billion (2004 est.)

Debt — external:
$5.96 billion (2004 est.)

Currency:
Costa Rican colon (CRC)

Exchange rates:
Costa Rican colones per US$: 437.91 (2004 est.), 398.66 (2003 est.), 359.82 (2002 est.), 328.87 (2001 est.), 308.19 (2000 est.)

Fiscal year:
calendar year

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Costa Rica Economy: