IMF Staff Country Reports

The 2025 Article IV Consultation discusses that Costa Rica has achieved remarkable economic progress due to its very strong fundamentals, policies, and policy frameworks. Such factors are expected to support robust growth going forward notwithstanding external headwinds. The economic outlook is expected to remain favorable in the near term. Further institutionalizing the progress made under the IMF-supported reform programs will help sustain long-run growth and raise living standards. The Banco Central de Costa Rica’s (BCCR’s) forward-looking, data-dependent approach to monetary policy has effectively anchored inflation and inflation expectations. There is scope to further cut the policy rate if inflation outturns run below the expected steady convergence to the BCCR’s 3 percent target. Supply-side reforms will help sustain Costa Rica’s impressive economic performance and address bottlenecks to growth. Narrowing skill mismatches, reducing labor market informality, and strengthening social assistance are priorities. Building on progress made under the Resilience and Sustainability Facility, efforts are underway to further advance climate-resilience and to catalyze climate finance.