Costa Rica Economy; Recovering and Expanding

Costa Rica lies between Panama and Nicaragua and itRica is also a producer of cocoa, sugar, lumber, wood
is bordered by the Caribbean Sea to the east andproducts and beef. In recent years, ecotourism,
the North Pacific Ocean to the west. It is comprisedpharmaceuticals, financial outsourcing and software
of 51,100 square kilometers and the territorial watersdevelopment have become major industries with
take up about 589 square kilometers. It is consideredsignificant contribution to the countrys GDP.
a conglomeration of a number of landforms. TheLately, other industries like electronics,
location of the country in the isthmus of Centralpharmaceuticals, eco-tourism, financial outsourcing and
America makes it easier to access Americansoftware development are now becoming major
markets, which have the same time zone as Centralindustries. There are a number of high tech
US and also has access to Europe and Asia via thecompanies which have sprung up in the area, including
Oceans.chip manufacturer Intel and Pharma companies like
Let's talk a little bit about the economical situation ofProcter & Gamble and Glaxo Smith Kline. Costa Rica
this fascinating country.is also self reliant in energy needs, with exception of
Costa Rica has suffered a lot from corruptedoils- and has the potential to be an electricity
governments. Interest costs on the governmentsexporter, as it already exports to Central America.
accumulated debt are equivalent to 30% of theThe unit of currency of Costa Rica is the Colon
governments total revenue. Liberalization efforts(CRC). This currency trades at 500 to the US dollar
have been hampered due to the resistance putand at around 600 to the Euro. A new system that is
forward by the political parties of Costa Rica. Theexpected around 2007, will see the Colon currency
main agendas of the today's government are still thefloat between two bands. The Central bank will be
curbing the rate of inflation, reducing the deficit, andbetter positioned to handle inflation and dicourage the
making improvisations to the services offered by theuse of the US greenback with the use of this
public sector. Despite this, the government has triedsystem.
to bring in foreign investment, technology andIn March 1998, the country joined other Central
management into the telecommunications andAmerican nations, and the Dominican Republic to
electrical power sector, which are run by the state.establish a Trade and Investment Council with the
Although blessed with fertile lands, abudance of freshUnited States. It has also clearly showed a willingness
water and a strategic position, the country stillto join the North American Free Trade Agreement
remains poor and is categorized as a third world(NAFTA). Costa Rica is also a member of the Cairns
country. The countrys economy emerged from theGroup, which is pursuing a policy of global agricultural
red in 1997, but has shown strong aggregate growthtrade liberalization in World Trade.
since then.With the help of agriculture, growing industries and of
The economy is based on agriculture. This includescourse tourism and ecotourism, Costa Rica economy
the production and export of pineapples, bananas andis sure to recover. This country has a great potential.
coffee. The countrys exports from the free tradeIt in the hands of the people and the government,
zones and tourism sectors led to significantwith hard work and strategically planned moves, to
developments in the growth rate of the GDP. Costamake this beautifull country wealthy as well.