Costa Rica Economy

Until the mid 19th century, Costa Rica was a very poor country with an economy based on subsistence agriculture. Then the introduction of coffee provided a product suitable for export. This was followed by bananas, and today these two crops generate the most export income for the country. Beef and sugar are also traditional agricultural exports, and in recent years, nontraditional products such as ornamental plants, pharmaceuticals, textiles, tires, furniture and others have become increasingly important. In 1993, exports were worth US$1.95 billion (over half went to the USA) and imports cost US$2.9 billion.

In Costa Rica, tourism has had an unprecedented boom. The number of foreign visitors rose from 376,000 in 1989 to 710,000 in 1993, when the value of' tourism revenues was US$577 million, making tourism the single most important earner of foreign currency for the first time. Since then, the increase in tourism has begun to level off, but it still remains the country's biggest industry. Inflation dropped steadily in the early 1990s, (27.3% in '90, 25.3% in '91, 16.9% in '92, 9.2% in '93). This is now changing, and inflation soared to 19.9% in '94, and preliminary figures for '95 (the only figure available at press time) indicate a further increase.

The standard of living is the second highest in Central America (after Panama). The economic growth of the country in 1992 was 7.3%, the highest total in almost a decade. In 93, growth was 6.5%, second only to Peru in Latin America. In '94, growth receded to 4.7%, which indicates a mid '90s recession. In mid '96, the minimum wage was US$146 a month, and average income was a little over US$200 a month. Unemployment is between 5% and 6%, but there is much underemployment.