Costa Rica, with a population of 5,180,829, is ranked 116th in the world, just behind Liberia. Located in Central America, it covers 51,100 sq. km, ranking 122nd globally, just below Bosnia and Herzegovina.
Costa Rica’s economic position in 2022 shows a GDP of $69,243,626,028.66, ranking 82nd globally. It falls behind Cote d’Ivoire, with a GDP of $70,018,715,016.83. In terms of GDP per capita, Costa Rica stands at $13,365.36, ranking 65th worldwide.
It is surpassed by Argentina, with a GDP per capita of $13,650.60. Costa Rica’s economy demonstrates stability and growth, with potential for further development in various sectors.
What are the economic activities of Costa Rica?
- Primary activities: 5.5% of GDP.
- Secondary activities: 20.6% of GDP.
- Tertiary activities: 73.9% of GDP.
Primary Sector of Costa Rica
Costa Rica’s primary sector, particularly agriculture, thrives due to its diverse climate and rich natural resources. With 35.47% of the land dedicated to agriculture, the country produces a variety of crops like sugarcane, pineapples, bananas, and more. Despite contributing 5.5% to the GDP, agriculture plays a crucial role in the economy.
Products like milk, oil palm fruit, fruits, oranges, chicken, cassava, and rice are vital to the sector, showcasing the significance of agriculture in Costa Rica.
Costa Rica’s diverse geology provides abundant natural resources, with a focus on hydropower. This renewable energy source plays a crucial role in the economy, driving sustainable development and reducing reliance on fossil fuels.
Secondary Sector of Costa Rica
What is the secondary sector or what are secondary activities?
The secondary sector comprises industries that transform raw materials into finished products for consumption. In Costa Rica, main industrial products include medical equipment, food processing, textiles, construction materials, fertilizers, and plastic products. These goods are produced for both domestic consumption and export markets.
Manufactures play a crucial role in Costa Rica’s total exports, accounting for 61.4% in 2023. This sector significantly contributes to the country’s economy and international trade competitiveness.
Tertiary sector of Costa Rica
What is the tertiary sector or what are tertiary activities?
The tertiary sector in Costa Rica encompasses a wide range of service-based activities aimed at enhancing productivity and meeting various needs. Some of the main tertiary activities in Costa Rica include healthcare and medical care, education and training, banking and finance, tourism and hospitality, transportation and logistics, and telecommunications. These services play a crucial role in driving the economy and improving the overall quality of life for the population.
Among these, Costa Rica’s tourism industry is a vital economic driver, contributing significantly to its GDP. With over 3.3 million annual arrivals, the sector thrives on the country’s natural beauty, showcased by popular destinations like the Manuel Antonio National Park and Arenal Volcano. Tourism accounts for nearly 65% of the population’s engagement, underscoring its paramount importance.
Another example of tertiary economic activity is the mobile cellular sector, with approximately 7.9 million subscriptions, supporting technological growth by enhancing connectivity and fostering innovation across various industries.
International Trade of Costa Rica
Import Activities of Costa Rica
Costa Rica’s import activities are of high importance, with imports totaling $2.7 billion, accounting for 39.09% of the country’s GDP in 2023.
Costa Rica’s key imports include refined petroleum, plastic products, medical instruments, cars, and broadcasting equipment. The country’s main import partners are the US (39%), China (14%), Mexico (5%), Guatemala (3%), and Brazil (3%).
Exports Activities of Costa Rica
Costa Rica’s total exports in 2023 amounted to $28,089,753,636.91, representing 40.57% of its GDP. With export activities contributing significantly to the economy, Costa Rica’s reliance on international trade is high, underscoring the importance of maintaining and expanding its export markets.
Costa Rica’s export activities focus on medical instruments, orthopedic appliances, bananas, tropical fruits, and other foods. The country’s top partners include the US (40%), Netherlands (7%), Guatemala (5%), Belgium (5%), and Nicaragua (3%).
Costa Rica economy challenges in 2024
In 2024, Costa Rica faces a liquidity crisis due to growing government debts. Despite being a green economy leader, poverty is on the rise post-COVID-19, exacerbating existing inequality. The country’s trade-based economy struggles to maintain stability amidst these challenges.
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