sy: Calle 120 Avenida O, Pavas, San Jose
mailing address: APO AA 34020
telephone: [506] 519-2000
FAX: [506] 519-2305

Flag description:

five horizontal bands of blue (top), white, red (double width),
white, and blue, with the coat of arms in a white elliptical disk on
the hoist side of the red band; above the coat of arms a light blue
ribbon contains the words, AMERICA CENTRAL, and just below it near
the top of the coat of arms is a white ribbon with the words,
REPUBLICA COSTA RICA

Economy
Costa Rica

Economy - overview:

Costa Rica's basically stable economy depends on tourism,
agriculture, and electronics exports. Poverty has remained around
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, as well as the fiscal
incentives offered in the free-trade zones. Exports have become more
diversified in the past 10 years due to the growth of the high-tech
manufacturing sector, which is dominated by the microprocessor
industry. Tourism continues to bring in foreign exchange, as Costa
Rica's impressive biodiversity makes it a key destination for
ecotourism. 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. Tax and public
expenditure reforms will be necessary to close the budget gap. In
October 2007, a national referendum voted in favor of the US-Central
American Free Trade Agreement (CAFTA).

GDP (purchasing power parity):

$45.77 billion (2007 est.)

GDP (official exchange rate):

$26.24 billion (2007 est.)

GDP - real growth rate:

6.8% (2007 est.)

GDP - per capita (PPP):

$11,100 (2007 est.)

GDP - composition by sector:

agriculture: 8.6%
industry: 29.4%
services: 62.1% (2007 est.)

Labor force:

1.92 million
note: this official estimate excludes Nicaraguans living in Costa
Rica (