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 internal and external deficits and sizable 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 is the only signatory to the US-Central American Free Trade Agreement (CAFTA) that has not ratified it. CAFTA implementation would result in economic reforms and an improved investment climate.

GDP/PPP (2005 est.): $40.44 billion; per capita $10,100. Real growth rate: 3.3%. Inflation: 13.8%. Unemployment: 6.6%. Arable land: 4%. Agriculture: coffee, pineapples, bananas, sugar, corn, rice, beans, potatoes; beef; timber. Labor force: 1.82 million; agriculture 20%, industry 22%, services 58% (1999 est.). Industries: microprocessors, food processing, textiles and clothing, construction materials, fertilizer, plastic products. Natural resource: hydropower. Exports: $7.005 billion (2005 est.): coffee, bananas, sugar, pineapples; textiles, electronic components, medical equipment. Imports: $9.69 billion (2005 est.): raw materials, consumer goods, capital equipment, petroleum. Major trading partners: U.S., Netherlands, Guatemala, Japan, Mexico, Brazil (2004).