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Costa Rica Costa Rica

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Costa Rica – Quick View
ECR score48.81 (Mar 2011)
ECR rank73 (Mar 2011)
Economic
GDP (2010)USD 35.39 billion
GNI per capita PPP (2009)USD 10,930
FDI inflow (till 2010 Q3)USD 1,015.5 million
Inflation (December 2010)4.84%
Central bank assets (2009)USD 4677.60 million (+7.88%)
Unemployment rate (2010)7.3%
Government deficit (2010)USD 1,869.73 million
Tax revenue (2010)USD 4664.74 million (+9.65%)
Political
Government typeDemocratic Republic
Recent political crisisNA
Economic freedom score (2011)49th
Freedom of information score (2010)29th
Corruption perception index (2010)41st
Structural
Birth rate16.6 births per ‘000
Population balanceBelow 14 years - 24.68%
Population balanceBetween 15 to 64 - 76.67%
Population balanceOver 65 – 6.58%
Life expectancy yearsMale 76.8 years
Life expectancy yearsFemale 81.8 years
Mortality rate4.1 per ‘000
Literacy rate96%
Internet access35%

[Top] Economic Overview

Costa Rica’s has a service sector based economy. Hotels, restaurants, tourist services, are major contributors to the economy.

(Source: Central Bank, state.gov)

Gross domestic product (GDP)

According to preliminary estimates, the Gross Domestic Product (GDP) at market prices in 2010 was CRC 18,819.11 billion, as compared to CRC 16,763.54 billion in 2009. The GDP in the year 2011 is projected to be CRC 20,729.48 billion.

Costa Rica GDP and GDP growth

(Source: Central Bank)

GDP per capita

In the year 2010, the GDP per capita at market price was CRC 4,123,797.5, as compared to CRC 3,717,557.6 in 2009. The GDP per capita is estimated to be CRC 4,491,258.3 in the year 2011.

Costa Rica GDP per capita at market price

(Source: Central Bank)

Gross national income (GNI)

In the year 2010, Gross National Income (GNI) was CRC 18,327.97 million, as compared to CRC 16,251.21 million in 2009.

(Source: Central Bank)

GNI per capita, PPP

The country’s GNI per capita at PPP increased from USD 9,360 in 2005, to USD 10,870 in 2010.

Costa Rica GNI per capita, PPP

(Source: UNDP)

Income tax tate

Resident individuals and corporations are taxed on income earned in Costa Rica only.

Income tax is levied on individuals in two categories:

  • Income from fixed salary or other remuneration
  • Income from profit sharing activity 

Income from fixed salary or other remuneration

Income

Tax Rate

Income Up to 323,000

Exempted

Income exceeding 323,000 Up to 485,000

10%

Income exceeding 485,000

15%

(Source: CINDE)

 

Income from profit sharing activity

Income

Tax Rate

Income Up to 1,434,000

Exempted

Income exceeding 1,434,000 Up to 2,142,000

10%

Income exceeding 2,142,000 Up to 3,573,000

15%

Income exceeding 3,573,000 up to 7,160,000

20%

Income exceeding 7,160,000

25%

(Source: CINDE)

Corporate tax

Corporate Tax Rate

Income

Tax Rate

Gross Income Up to 21,468,000

10%

Gross Income Up to 43,183,000

20%

Gross Income Up to 43,183,000

30%

(Source: CINDE)

 

Tax contribution

Total tax rate (% profit)

Social security contributions

29.5

Property transfer tax

0.5

Tax on land property

0.4

General sales tax (VAT)

13.0

Stamp duty

1

Municipal patent license

5.3

(Source: doingbusiness.org)

Inflation rate

The inflation rate in Costa Rica was 4.84% in January 2011, as compared to 5.34% in 2010.

Costa Rica Inflation rate

(Source: Central Bank)

FDI inflow

Foreign direct investment (FDI) inflow was USD 1,015.5 million at the end of the third quarter of 2010, whereas FDI inflow at the end of 2009 was USD 1,346.5 million.

(Source: Central Bank)

Portfolio Investment

 

Portfolio Investment (USD million)

End of Period

Q3 2010

Q4 2009

Q4 2008

Portfolio investment

-25.6

-286.1

401.6

Titles equity

-0.6

-2.7

-11.5

Debt

-25.1

-283.3

413.2

(Source: Central Bank)

Banking sector assets

The total assets of Banco Central de Costa Rica amounted to CRC 2,715,306 million, which grew by 7.88% from the previous year.

Total Assets – Central Bank of Costa Rica (CRC million)

 

2009

2008

Total Assets

2,715,306

2,516,806

Assets to Non-Residents

2,592,222

2,385,819

Foreign Assets

2,261,099

2,080,401

Availability

2,254,730

2,254,730

Other assets

6,369

10,528

Contributions To Financial Internac

331,123

305,417

Active Residents

123,083

130,988

Domestic Assets

123,083

130,988

National security investments

79,050

79,050

Loans to residents

4,085

5,577

Short-term Financial Assets

2,384

2,705

Other assets

37,565

37,565

(Source: Central Bank)

[Top] Financial Indicators & Government Financial

Consumer price index (CPI)

Consumer Price Index in December 2010 was 143.09, which grew by 0.74% over the previous month.

 Costa Rica Consumer Price Index

Base, July 2006 = 100

(Source: Central Bank)

Interest rates on saving deposits

As of February 2011, the country’s banks and financial institutions offer an interest rate of 5.55% on saving deposits.

(Source: Central Bank)

Interest rates on time deposit

 

Interest rates on time deposit as of 15th February 2011 (%)

3 months deposit

6 months deposit

12 months deposit

State Banks

Private Banks

Non-Bank Financial Institutions

State Banks

Private Banks

Non-Bank Financial Institutions

State Banks

Private Banks

Non-Bank Financial Institutions

4.64

5.79

8.92

5.79

7.17

9.87

6.64

7.96

10.96

(Source: Central Bank)

Money supply (currency in circulation)

The amount of money in circulation in the country was 2,617,209.2 million in 2010.

Costa Rica Money Indicators

(Source: Central Bank)

Government expenditure

Government expenditure at the end of December 2010 was CRC 3,724,382.50 million, as compared to CRC 2,936,305.9 million at the end of December 2009.

Expenditure of Government of Costa Rica (CRC million)

 

December  2010

December 2009

Total Expenditure

3,724,382.5

2,936,305.9

Wages and salaries

965,697.3

936,856.7

Social charges

194,833.7

177,928.9

Expenditure on goods and services

96,645.1

106,359.3

Current transfers

1,205,633.9

1,053,553.2

Service interests

377,054.4

360,106.7

Investments in nonfinancial assets

46,313.7

82,119.6

Capital transfers

241,415.3

219,381.5

(Source: Central Bank)

Public sector debt

The general public sector debt in Costa Rica amounted to CRC 4,598.53 million in August 2010.

(Source: Central Bank)

Official exchange rate

Costa Rica Average exchange rate

(Source: Central Bank)

Government finances

Fiscal balance

The country recorded fiscal surplus in 2007 and 2008, where as it registered fiscal deficit for the next two years. Fiscal deficit for the year 2010 was CRC 994,282.70 million, as compared to a deficit of CRC 573,041 million in 2009.

Costa Rica Fiscal balance

(Source: Central Bank)

Total revenue

The total revenue of Costa Rica in 2010 was CRC 2,730,099.80 million, with an increase of 15.52% from the previous year.

Revenues of Government of Costa Rica (CRC million)

End of Period

December 2010

December 2009

Total Revenue

2,730,099.8

2,363,264.9

Current revenue

2,728,810.4

2,359,137.4

Tax revenue

2,480,607.4

2,262,289.3

Non-Tax revenue

248,203

96,848.1

Capital revenue

1,289.4

4,127.5

(Source: Central Bank)

Tax revenue

The country’s total tax revenue was CRC 2,480,607.4 million in the year 2010, witha growth of 9.65% from the previous year.

Total Tax Revenues of Government of Costa Rica (CRC million)

End of Period

2010

2009

Total tax Revenue

2,480,607.40

2,262,289.30

Customs

686,661.70

593,616.40

Tax on Income

752,171.40

687,420.30

Tax on Domestic sales

486,881.50

451,603.60

Tax on Consumption

24,723.60

24,695.00

Other Income Tax

530,169.20

504,954.00

(Source: Central Bank)

Current account balance - surplus/deficit

The country’s current account balance for the first three quarters of 2010 was USD 918 million.

Costa Rica Current account balance

Balance of payments

Balance of Payments (USD Million)

 

2010 (Till Q3)

2009

Current Account

-918

-576

Capital and financial account

1,650.2

707.2

Errors and omissions capital unspecified

-236.7

129.3

Reserve assets

 

-495.5

-260.5

(Source: Central Bank)

[Top] Labour Force and Employment Overview

The country’s total labour force in July 2010 was 2.05 million, indicating an increase of 0.02% from the previous year. Males accounted for 61.85% of the total labour force, as compared to females (38.15%). The employed and unemployed population in the country was 1.9 million and 0.14 million respectively. The country’s employment rate was recorded at 54.8%.

The total labour force participation rate was 59.1% in July 2010. The labour force participation rate of males was 75.9%, as compared to 43.5% for females.

Proportion of population of working age

Of the total population, 3.47 million peoples were of working age in July 2010, compared to 3.39 million in July 2009.

(Source: inec)

Employment in agriculture and livestock

The total employment in agriculture and livestock was 285,076 people in July 2010, as compared to 281,070 people in July 2009.

(Source: inec)       

Unemployment rate

The unemployment rate in the country stood at 7.3% in July 2010, as compared to 8.4% in July 2009. Underemployment rate was 11.16% in July 2010, as compared to 13.46% in July 2009.

(Source: inec)

Minimum wage

The total minimum average wage rate for 2010 (till November) was CRC 416.53 per month.

(Source: Central Bank)

Level of unionisation

The following are the major trade unions in Costa Rica:

  • Central del Movimiento de Trabajadores
  • Costa Rican Confederation of Workers

(Source: CMTC,CTRN)

[Top] Political Stability

Government stability

Costa Rica has a democratic republic form of government. The government system consists of a legislative branch, an executive branch and a judicial branch.

The executive branch consists of the President and his cabinet. The President of Costa Rica is the head of the government and also the head of the country. The President and the two Vice Presidents are elected for a term of four years. The cabinet is comprised of 22 ministers, appointed by the President.

The legislative branch consists of 57 deputies, who are elected by the provinces for a term of four years. These deputies represent the country’s seven provinces.

The major Political parties in Costa Rica include:

  • The Social Christian Unity Party (PUSC)
  • The National Liberation Party (PLN)
  • The Citizen Action Party (PAC)

(Source: costaricaweb.com, Costarica-info.com, state.gov)

Regulatory environment

The powers in the country are exercised by the President, the deputies and the judiciary system. The President has the authority to appoint government ministers of the legislative branch, has command over the public forces, and can sanction and approve laws. The deputies have the rights to make laws, appoint judges and approve or reject international agreements. The deputies also have the right to approve ordinary and extraordinary budgets of the country.

(Source: costaricaweb.com, state.gov)

Costa Rica Economic Freedom Indices

(Source:Heritage.org)

The country’s economic freedom score is 67.3 making its economy 49th freest in the 2011 Index of Economic Freedom. It ranks 9th out of 29 countries in the South and Central America/ Caribbean region.

Corruption perception

Costa Rica is ranked 41st with a score of 5.3 on the Corruption Perception Index (CPI) from 2010. The CPI is a survey to measure the perceived level of corruption across countries worldwide.

(Source:transparency.org)

Freedom of information

According to freedom group, Reporters without Borders, media in Costa Rica is fairly free. The country has nine major newspapers and public TV stations.

(Source: BBC)

Costa Rica is ranked 29th in the world Press Freedom Index of 2010 with a score of 8.08, which indicates that media in Costa Rica is not restricted.

(Source: rsf.org)

Newspapers

  • Al Dia  
  • Diario Extra
  • El Heraldo
  • La Nacion
  • La Prensa Libre 
  • La Republica
  • The Tico Times

(Source: BBC)

Judicial system

The judicial system in Costa Rica consists of

  • Supreme Court
  • High Courts
  • Courts
  • Mayors

The Supreme Court is the highest court of justice, and is comprised of two judges.

(Source: costaricaweb.com)

[Top] Demographic Overview

Population

The total population of Costa Rica was 4.56 million in July 2010, which was a growth of 1.23% from the previous year. In July 2010, the males in the country accounted for 48.96% of the population, whereas females accounted for 51.04%.

(Source: Central Bank, UN)

Costa Rica Population by gender

(Source: Central Bank)

Gender ratio

The country’s gender ratio is slightly imbalanced with 103.2 males per 100 females.

76.67% of the country’s population are aged 15 to 64, followed by 24.68% below 14, and the remaining 6.58% above 65. 

Population by Age

Number of People

0-14

1,126,062

15-64

3,497,557

65+

300,337

 

 

 

(Source: inec)

Mortality rate

The total mortality rate was 4.1 deaths per 1000 population in the year 2009. The country registered 18,560 deaths in 2009. The infant mortality rate of the country was 8.8 deaths per 1000 live births in 2009.

(Source: inec)

Birth rate

The birth rate in the country was 16.6 births per 1000 population in the year 2009, as compared to 16.9 births per 1000 population in 2008.

(Source: inec)

Average life expectancy rate

The average life expectancy at birth for males is 76.8 years, and 81.8 years for females.

(Source: inec)

Migration

In mid 2010, 489,200 people of total population migrated from Costa Rica, which accounts for 10.5% of total population.

 (Source: UN)

Ethnicity

The major ethnic groups in Costa Rica are European and mestizo. Other ethnicities include African, Chinese and Amerindian.

(Source: state.gov)

Human development index (HDI)

The country was placed at 62nd on the Human Development Index (HDI) of 2010, conducted by United Nations. The HDI provides a composite measure of three dimensions of human development: living a long and healthy life (measured by life expectancy), being educated (measured by adult literacy and gross enrolment in education) and having a decent standard of living (measured by purchasing power parity, PPP, income).

(Source: UNDP)

Poverty

About 21.7% of the population was in poverty in the year 2009 as compared to 20.7% in 2008.

(Source: inec)

[Top] Soft Infrastructure

Literacy rate

The adult literacy rate of the country was estimated at 96% in 2008.

(Source: UNDP)

Educational resources

The educational system consists of three stages - elementary education, high school education and technical training.

Elementary education or public education is free and compulsory for children between the age group of 6 to 13 years in Costa Rica.

The country has 9,300 educational institutes, and more than 200 private schools. Costa Rica has 60 universities of which five are public.

(Source: CINDE, CINDE)                      

In 2009, the government expenditure on education was 37.7% of total expenditure, as compared to 22.8% in 2008.

(Source: UN) 

Health care

In 2008, the country had about 18.2 medical personnel, 7.8 dentists and 18.6 nurses per 10,000 population.

In the year 2008, total health care expenditure was CRC 988,186.24 million, or 7.07% of the GDP.

(Source: MOH)

[Top] Hard Infrastructure

Public transport in Costa Rica is primarily dependent on roadways.

Roadways

The total length of road network in Costa Rica was 39,043 km, which includes 10,058 km of paved roads, and 28,985 km of gravel or earth roads.

(Source: inec)

Ports

The major ports in Costa Rica are:

  • Puerto Limon
  • Puerto Moin
  • Puerto de Caldera
  • Puerto Puntarenas
  • Puerto Golfito
  • Puerto Quepos

(Source:world port source)

Airports

 

Town

Airport name

Runway length

San Jose

Juan Santamaria Intl

9,800 ft

Liberia

Daniel Oduber Quiros Intl

9,000 ft

Chacarita

Chacarita

4,900 ft

Golfito

Golfito

4,500 ft

Limon

Limon Intl

5,900 ft

Los Chiles

Los Chiles

4,200 ft

Palmar

Palmar Sur

4,500 ft

Guapiles

Guapiles

3,600 ft

La Managua

La Managua

3,600 ft

(Source: Air charter world)

Telecommunications networks

In 2009, 827,963 households had home phone services, of which 786,013 households had one phone service, 38,493 had two phone services and 3,457 with more than two phone services.

Also in 2009, 873,291 households had cell phone services including 427,536 households with one cell phone service, 279,028 had two cell phone services and 166,727 had more than two cell phone services.

(Source: inec)

In 2009, the country registered 33 fixed telephone lines per 100 inhabitants, as compared to 31.60 in 2008.

(Source: inec)

The country had 1.57 million internet users in the year 2010, accounting for 35% of the total population.

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