Projections for the Costa Rican Economy in 2024

What are the economic growth projections for the Costa Rican economy for 2024?

According to the projections of some experts, Costa Rica will have economic growth between 3.5% and 4%. This means that the country will face lower growth than in 2023. It will be this way since external demand will be lower than in 2023 due to the international situation in global markets. At the level of domestic demand, which in recent years has not been the driving force of the Costa Rican economy, a slight rebound is expected.

How will government policies impact the Costa Rican economy?

Government policies will maintain their current trajectory, with the Central Bank of Costa Rica (BCCR) focused on managing inflation, which is no longer a cause for concern. The entity will likely continue adjusting its monetary policy to favor a lower rate. Although the BCCR does not foresee changes in its position regarding the exchange rate, concern will persist in specific economic sectors during 2024.

What are the main economic risks and opportunities for 2024?

Costa Rica exhibits a marked dependence on external conditions in international markets. In recent years, the country’s economic expansion has been closely linked to the external sector and global trade. Therefore, the economic outlook and potential threats for 2024 are closely linked to the international situation, with particular attention to nearby markets such as the United States that represent crucial trading partners. If this growth, led by the external sector, fails to translate into opportunities for the majority of the population, poverty, unemployment, and marked inequality will persist, generating insecurity at the national level.

What political changes could influence the economic and social situation in Costa Rica in 2024?

Without a pre-election year, political changes will likely have a more muted impact on the economic and social situation. It is anticipated that the government will persist in implementing policies aligned with the political leadership adopted by President Rodrigo Chaves since his assumption of office. It is unlikely that this approach will undergo significant modifications. Social demands are expected to intensify in favor of a country that offers greater security, a lower cost of living, greater employment opportunities, and a decrease in poverty and inequality.

What are the technological trends that could affect the Costa Rican economy?

Global technological trends have a disparate influence on various economies, uniquely affecting specific activities and sectors. The adoption and implementation of 5G technology is one of those trends that could significantly impact the Costa Rican economy. The resolution of this matter, which involves politically complex but essential considerations for the country as a whole, is yet to be determined.

How do technological innovations impact Costa Rica?

Technological innovations impact business activity. Globalization and the pressure for global competitiveness always drive companies to stay technologically updated, allowing them to improve processes, efficiency, and productivity. They also are the source of the proliferation of new products and services that satisfy the demands of their consumers. In this way, 2024 will again be a year in which productive and service activities must be attentive and implement technological innovations that allow them to grow sustainably.

Are there environmental risks that could impact the Costa Rican economy?

Currently, no perceived environmental risks could directly affect the country’s economy. However, it is essential to highlight that some of these impacts may manifest themselves in the long term, especially in specific economic activities. It is worth mentioning that, due to the geographical location of Costa Rica, the country is always subject to possible impacts derived from natural phenomena such as hurricanes or heavy rains, factors that are influenced by the randomness inherent to climatic circumstances.

The health of the Costa Rican economy in 2024 is intricately tied to a myriad of global and domestic variables. Global economic conditions, characterized by fluctuating growth rates and trade dynamics, directly affect Costa Rica’s export-oriented economy, particularly in sectors such as agriculture and tourism. Governmental policies, including fiscal and monetary measures, shape investor sentiment and capital inflows. Furthermore, economic risks and opportunities stemming from internal and external factors necessitate adaptive strategies to harness growth potential while mitigating vulnerabilities. Political factors, such as governance stability and policy continuity, foster a conducive business environment and attract foreign direct investment. Concurrently, technological trends underscore the imperative for innovation-driven growth, leveraging digital transformation to enhance productivity and competitiveness. Lastly, climatic conditions, amidst increasing climate change concerns, pose challenges and opportunities, requiring sustainable practices to safeguard vital sectors like agriculture and promote eco-friendly tourism. In sum, the holistic interplay of these variables will significantly influence the trajectory of Costa Rica’s economic prosperity in 2024.