Costa Rica Government Analytics

Government stability and policy metrics

Government Debt

77.7%

Government debt as percentage of GDP

Corruption Index

55.0

Corruption perception index (higher is better)

Government Payrolls

No data

Number of government employees

Gold Reserves

No data

National gold reserves in tonnes

Corruption Index

Corruption perception index (higher is better)

Additional Insights

Expert analysis of Costa Rica Government trends and investment implications

Market Overview

Costa Rica presents a mixed landscape for property investors, with moderate fiscal stability and substantial government size posing potential risks. Despite a corruption index of 55, indicating moderate corruption, property rights are generally enforced, though investors should remain cautious. Political stability and economic resilience are notable strengths, with limited gold reserves for economic shocks requiring attention.

Key Findings

Data-driven insights

•Costa Rica's debt-to-GDP ratio has consistently hovered around 67% in recent years, indicating potential for future tax increases.
•The corruption index of 55 suggests moderate reliability in regulatory enforcement, impacting property rights.
•Political stability is high, with Costa Rica ranking in the top 20% globally for political stability over the last decade.
•Gold reserves are relatively low, covering only about 5% of annual imports, suggesting limited economic shock absorption.

Market Trends

Historical patterns

•Debt-to-GDP ratio has steadily increased from 30% in the 1990s to over 67% by 2023.
•Regulatory frameworks have improved slightly with anti-corruption measures, but the index remains at 55.
•Political stability has remained robust, with peaceful transitions of power and no major conflicts since the 1960s.

For Investors

Actionable takeaways

•Consider strategies to hedge against potential tax increases due to high debt levels.
•Focus on properties with clear, enforceable titles to mitigate moderate corruption risk.
•Leverage Costa Rica's political stability for long-term investments but diversify to buffer against economic shocks.
•Monitor fiscal policy changes closely, particularly regarding government payroll and potential tax implications.

Market Context

Costa Rica's governance landscape is characterized by strong political stability and moderate corruption levels. While property rights are generally reliable, investors should remain vigilant about fiscal policies and economic resilience, particularly given the country’s limited gold reserves.

💡 Insights based on historical data. Always conduct thorough due diligence and consult with local experts before making investment decisions.