Costa Rica Economy Analytics

Key economic indicators including GDP, inflation, and interest rates

GDP

$86.5

Gross Domestic Product

GDP Per Capita

$14,026

GDP per person

Inflation Rate

30.0%

Annual change in consumer prices

GDP

Gross Domestic Product

GDP Per Capita

GDP per person

Inflation Rate

Annual inflation rate

Unemployment Rate

Percentage of labor force that is unemployed

Interest Rate

Central bank interest rate

Government Debt to GDP

Government debt as percentage of GDP

Additional Insights

Expert analysis of Costa Rica Economy trends and investment implications

Market Overview

Costa Rica presents a mixed economic landscape for real estate investment, with moderate inflation and relatively high interest rates impacting financing costs. While a stable currency reduces some foreign exchange risks, high unemployment and government debt levels pose challenges to economic stability and renters' purchasing power.

Key Findings

Data-driven insights

•The inflation rate is low at 0.3%, suggesting stable purchasing power for renters, but GDP growth data would be needed for a complete analysis.
•Interest rates at 4.75% imply higher financing costs for investors, affecting mortgage affordability and potentially cooling market activity.
•With unemployment at 7.8%, there is a risk of reduced rental demand and potential payment reliability issues among tenants.
•Government debt to GDP is high at 77.67%, indicating fiscal pressure that could lead to future austerity measures or tax increases.

Market Trends

Historical patterns

•Costa Rica has experienced moderate inflation rates over the past decades, contributing to relatively stable consumer prices.
•Interest rates have varied but are currently higher than the global average, impacting borrowing costs.
•The unemployment rate has seen fluctuations, reflecting broader economic vulnerabilities and labor market challenges.

For Investors

Actionable takeaways

•Consider timing your investment to coincide with potential interest rate cuts to reduce financing costs.
•Explore financing strategies that lock in current rates if anticipated hikes are expected in the near term.
•Implement foreign exchange hedging strategies to mitigate any potential currency volatility despite its current stability.
•Monitor unemployment trends as they directly impact rental demand and tenant payment reliability.

Market Context

Costa Rica is an attractive destination for real estate due to its stable inflation and strategic location. However, investors should be cautious of fiscal and employment challenges that could impact long-term returns.

💡 Insights based on historical data. Always conduct thorough due diligence and consult with local experts before making investment decisions.