Historically, Costa Rica's economy has been based on agriculture, including the production of coffee, bananas, pineapples, and ornamentals, but in recent times eco tourism, electronics, pharmaceuticals, financial outsourcing and software development have become the prime industries. Costa Rica's location in the Central American isthmus provides easy access to American markets as it has the same time zone as the central part of the United States and direct ocean access to Europe and Asia.

The economy has been expanding for Costa Rica in part because the Government had implemented a seven year plan of expansion in the high tech industry. The central government offers tax exemptions for those who are willing to invest in the country. High levels of education among its residents make the country an attractive investing location. Several global high tech corporations have already started developing in the area exporting goods including chip manufacturer Intel and pharmaceutical companies such as Procter & Gamble and Glaxo Smith Kline. Trade with South East Asia and Russia has boomed during 2004 and 2005, and the country is expected to obtain full Asia-Pacific Economic Cooperation Forum (APEC) membership by 2007 (the country became an observer in 2004).

For the fiscal year 2005 the country showed a government deficit of 2.1%, internal revenue increased an 18%, exports increased a 12.8% and the number of visiting tourists increased a 19%, reaching 1.5 million people. Revised economic figures released by the Central Bank indicate that economic growth stood at 5 %, nevertheless the country faced high inflation (14%) and a trade deficit of 5.2%. For 2006 the economy is expected to grow a 6.8%

The unit of currency is the colón (CRC), which trades around 500 to the U.S. dollar; currently about 600 to the euro. For 2007 a new currency exchange system will allow the value of the CRC colón to float between two bands as done previously by Chile. The idea is that by doing so the Central Bank will be able to better tackle inflation and dis-encourage the use of the US greenback.

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( Downtown San José )