Costa Rica Economy; Recovering and Expanding

Costa Rica lies between Panama and Nicaragua and itproducts and beef. In recent years, ecotourism,
is bordered by the Caribbean Sea to the east and thepharmaceuticals, financial outsourcing and software
North Pacific Ocean to the west. It is comprised ofdevelopment have become major industries with
51,100 square kilometers and the territorial waters takesignificant contribution to the countrys GDP.
up about 589 square kilometers. It is considered aLately, other industries like electronics, pharmaceuticals,
conglomeration of a number of landforms. The locationeco-tourism, financial outsourcing and software
of the country in the isthmus of Central Americadevelopment are now becoming major industries.
makes it easier to access American markets, whichThere are a number of high tech companies which
have the same time zone as Central US and also hashave sprung up in the area, including chip manufacturer
access to Europe and Asia via the Oceans.Intel and Pharma companies like Procter & Gamble
Let's talk a little bit about the economical situation ofand Glaxo Smith Kline. Costa Rica is also self reliant in
this fascinating country.energy needs, with exception of oils- and has the
Costa Rica has suffered a lot from corruptedpotential to be an electricity exporter, as it already
governments. Interest costs on the governmentsexports to Central America.
accumulated debt are equivalent to 30% of theThe unit of currency of Costa Rica is the Colon (CRC).
governments total revenue. Liberalization efforts haveThis currency trades at 500 to the US dollar and at
been hampered due to the resistance put forward byaround 600 to the Euro. A new system that is
the political parties of Costa Rica. The main agendasexpected around 2007, will see the Colon currency
of the today's government are still the curbing the ratefloat between two bands. The Central bank will be
of inflation, reducing the deficit, and makingbetter positioned to handle inflation and dicourage the
improvisations to the services offered by the publicuse of the US greenback with the use of this system.
sector. Despite this, the government has tried to bringIn March 1998, the country joined other Central
in foreign investment, technology and management intoAmerican nations, and the Dominican Republic to
the telecommunications and electrical power sector,establish a Trade and Investment Council with the
which are run by the state.United States. It has also clearly showed a willingness
Although blessed with fertile lands, abudance of freshto join the North American Free Trade Agreement
water and a strategic position, the country still remains(NAFTA). Costa Rica is also a member of the Cairns
poor and is categorized as a third world country. TheGroup, which is pursuing a policy of global agricultural
countrys economy emerged from the red in 1997, buttrade liberalization in World Trade.
has shown strong aggregate growth since then.With the help of agriculture, growing industries and of
The economy is based on agriculture. This includes thecourse tourism and ecotourism, Costa Rica economy
production and export of pineapples, bananas andis sure to recover. This country has a great potential. It
coffee. The countrys exports from the free tradein the hands of the people and the government, with
zones and tourism sectors led to significanthard work and strategically planned moves, to make
developments in the growth rate of the GDP. Costathis beautifull country wealthy as well.
Rica is also a producer of cocoa, sugar, lumber, wood