Economics

Costa Rica Economics

Until the 1960s, Costa Rica depended on coffee and bananas for most of its export earnings. Coffee income was well distributed, which fueled a dynamic commercial sector. After the 1948 Civil War, nationalized banks channeled subsidized loans to neglected regions and new activities. In the 1960s, beef and sugar assumed greater importance, and the country began to industrialize, protected by Central American Common Market tariffs. Following a debt crisis in the early 1980s, the state reduced its role in the economy and promoted export-oriented agriculture and industries. Since the late 1990s, tourism has been the second largest source of dollars, after bananas.

**Some Strengths**
Major coffee, beef, and banana exports. Expanding tourism also fueling construction. Strong inward investment. Favorable WTO ruling on banana access to EU market.

**Some Weaknesses**
Coffee, beef, and bananas all vulnerable to falling prices. History of high inflation. Dependence on imported oil. Large domestic debt. Competitiveness hindered by insufficient investment in infrastructure. State monopolies have deterred investment in energy, telecommunications, and insurance sectors. Inefficient management.
 * EXPORTS**[[image:http://dev.prenhall.com/divisions/hss/worldreference/images/cr_export.gif width="360" height="178" caption="Exports"]][[image:amamoscostarica/costa_1.jpg align="right" caption="This Economic Indicator shows the GDP, Inflation, Unemployment rate, and the years that all this was happening in."]]


 * IMPORTS**[[image:http://dev.prenhall.com/divisions/hss/worldreference/images/cr_import.gif caption="Imports"]]

** Gross National Product (GNP): ** $15.7bn
 * Exchange rates against the US$ over the last year: **398.7 Costa Rican colones (359.2)

__**Score Card**__

 * **Balance of Payment: -$702m** ||
 * **World GNP Ranking: 74th** ||
 * **GNP per Capita: $4060** ||

//Infant mortality rate// (2011 est.)--9.45/1,000. Inflation rate (2010 est.): 5.7%. Unemployment (2010 est.): 7.3%. Currency: Costa Rica Colon (CRC). Natural resources: Hydroelectric power, forest products, fisheries products.

__Literacy Rate__ = //Literacy//--96%