M.
BARNES
embassy: Calle 120 Avenida O, Pavas, San Jose
mailing address: APO AA 34020
telephone: [506] 220-3939
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 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 est.)

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)

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

Investment (gross fixed):
19.2% of GDP (2004 est.)

Budget:
revenues: $2.497 billion
expenditures: $3.094 billion, including capital expendit