Since there were no sources of gold in Costa Rica those who came came to farm. [46], Sport fishing is an important part of the tourism industry; species include marlin, sailfish, dorado, tarpon, snook, rooster fish, wahoo, tuna, mackerel, snapper and rainbow bass. Firstly, when the global value of the product dropped, the country would experience a sudden and dramatic drop in income. [6], Government bond ratings: (January 2017) Standard & Poor's: BB-; Moody's: Ba2[97][37], Budget deficit: 6.1 percent of the GDP[30], Population below poverty line: The magazine Travel Weekly named Costa Rica the best destination in Central and South America in 2011. The bill in congress was intended to "protect the extraordinary marine and coastal resources" from "indiscriminate and unsustainable commercial fishing." Moody's was also concerned about the "lack of political consensus to implement measures to reduce the fiscal deficit [which] will result in further pressure on the government's debt ratios". It makes up about 6.5% of Costa Rica’s GDP, and employs 12.9% of the labor force (2016). [39], In early August 2017, President Luis Guillermo Solís admitted that the country was facing a "liquidity crisis", an inability to pay all of its obligations and to guarantee the essential services. [40][79], Most parts of the country are accessible by road. Costa Rica’s economy revolves around foreign investment and tourism. They settled on coffee and sure enough, exporting the drink led to economic growth and a steady stream of money flowing in. By 2016, 2.6 million tourists visited Costa Rica. In 2017, Costa Rica was considering the export of electricity to neighbouring countries. [84], More recently, Costa Rica reached 40th place in 2015, with a score of 55 on the Perception of Corruption scale; this is better than the global average. Costa Rica declared its independence from the mother country and later established itself as an independent republic—and with that came a new currency. Costa Rica experienced steady growth during the past several years, but in 2009, the economy shrank by 2.5%, largely on account of the global economic recession. In spite of government attempts at improving the enforcement of intellectual property laws, this aspect remains a concern. Thanks to its stable and developed economic base, Costa Ricans enjoy a higher standard of living than other Central American countries like neighbor Nicaragua and also has a stronger growth rate in terms of social, political and economic matters. Costa Rica was a pioneer in this type of tourism and the country is recognized as one of the few with real ecotourism. 1.2% [30], In 2014, President Solís presented a budget with an increase in spending of 19% for 2015, an increase of 0.5% for 2016 and an increase of 12% for 2017. 39.5% (2009 est. The agency particularly cited the "rising government debt burden and persistently high fiscal deficit, which was 5.2% of GDP in 2016". Costa Rica's political stability, high standard of living, and well-developed social benefits system set it apart from its Central American neighbors. Mostly a market economy with some socialist protections and a few state sponsored monopolies. 75.9% (2016 estimate) Hotels, restaurants, tourist services, banks, call centers and insurance. [40], In 2015 the following were the major export products (US$): medical instruments ($2 billion), bananas ($1.24B), tropical fruits ($1.22B), integrated circuits ($841 million) and orthopedic appliances ($555M). With a $1.92-billion-a-year tourismindustry, Costa Rica was the most visited nation in the Central American region, with 2.42 million foreign visitors in 2013. Exporting cash crops benefit many countries in the Latin American region, and it became the bedrock of most of their economies. lowest 10%: In fact, short of snow, you can find almost any weather in Costa Rica. There is also the potential for a ‘dry canal’ linking sea ports on our Atlantic and Caribbean Coasts that could need up to $16 billion of investment. In fact, its economy depends mainly on tourism, which is a rapidly expanding industry, agriculture and the export of electronic components. As of 2012, 11.5 percent of the Costa Rican labor force was employed in tourism. From cold, misty mountains to hot, humid rainforest. Most of the tourists come from the U.S. and Canada (46%), and the EU (16%),[55] the prime market travelers in the world, which translates into a relatively high expenditure per tourist of $1000 per trip. Costa Rica's main cash crop, historically and up to modern times, was Bananas. Costa Rica Economy. Costa Rica joined other Central American countries, plus the Dominican Republic, in establishing a Trade and Investment Council with the United States in March 1998, which later became the Dominican Republic–Central America Free Trade Agreement. This fact determined the character of Costa Rica and made it different fromother Spanish colonies. [32] [83] However, in fall 2004, three former Costa Rican presidents, José María Figueres, Miguel Angel Rodríguez, and Rafael Angel Calderon, were investigated on corruption charges related to the issuance of government contracts. Depending on location and altitude, many regions differ in agricultural crops and techniques. In addition to the legal aspects of working in Costa Rica, it is important to consider practical concerns. agriculture: 5.5% (2016 estimate) Bananas, pineapples, coffee, beef, sugarcane, rice, corn, dairy products, vegetables, timber, fruits and ornamental plants. This is far from the whole story, however, as agricultural and manufactured goods only make up around 30 percent of the country’s GDP. [27] By August 2017, Costa Rica was having difficulty paying its obligations and the President promised dramatic changes to handle the "liquidity crisis". Aeropuerto Internacional Juan Santamaria", "The Travel & Tourism Competitiveness Report 2008", "País segundo en competitividad turística en América Latina", "Costa Rica racks up international awards -", "Costa Rica Tourism Board on World Travel Awards", "inec.go.cr: "Estadisticas de Comercio Exterior, 2013", "Costa Rica - Location, Geography, People, Culture, Economy, & History", "The Investment Promotion Agency of Costa Rica", "Okay Industries Expands Operation in Costa Rica and Reinvests US$ 2 Million", "Intel supone el 4,9 por ciento del PIB de Costa Rica", "Intel fabrica el procesador "más veloz del mundo" en Costa Rica", "Intel closes Costa Rica operation, cuts 1,500 jobs", "imf.org: "Costa Rica: Selected Issues – IMF Country Report No. Even though bananas, pineapple, sugar, coffee, lumber, wood products and beef are still important exports, in recent times medical instruments,[26] electronics, pharmaceuticals, financial outsourcing, software development, and ecotourism are now the prime exports. with continuing growth in the GDP (Gross Domestic Product) and moderate inflation, though with a high unemployment rate: 11.49% in 2019. 20.5% (2017)[21], Household income or consumption by percentage share: The journey to either coast was over mountains and throughdifficult lowlands. [37] In late July 2017, the Central Bank estimated the budget deficit at 6.1 percent of the country's GDP. This sector generated US$4.6 billion in 2016, nearly as much as tourism. The rest is drawn from tertiary industries – in other words, services. [67][68], In 2006 Intel's microprocessor facility alone was responsible for 20% of Costa Rican exports and 4.9% of the country's GDP. When you think of Costa Rica, you probably think of hot steamy weather and endless sunshine. Debt payments account for one-third of that amount. Costa Rica is a democratic, free and independent republic. [45] In mid 2017, the country was planning to ban large-scale commercial fishing off the southern Pacific Coast in an area nearly a million acres in size. Costa Rica’s exports then, consist of many different products, and besides those already mentioned, it also produces ornamental plants, seafood, and beef. 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