Economy of Costa Rica

Over the past few days I have learned a lot about the Costa Rican economy and culture. The more I learn, the more questions I have about Costa Rica. Costa Rica is a country with one of the most free trade agreements in the world. One question I asked myself is why does Costa Rica have so many free trade agreements? I learned that since Costa Rica is a small country, importing necessary commodities is essential to the health and growth of its economy. They are unable to produce everything that it requires for full functioning. It is good that Costa Rica is able to realize what it can and cannot do in order to thrive as a country. Their free trade agreements reflects on the Tico culture as they are always ready to lend a helping hand.

As I learned more about the Costa Rican economy, I learned that the inflation is greater than the growth of the economy. I wanted to know why this is the case. It turns out that the rate of growth of the Costa Rican economy is actually increasing, but the rate of inflation is also increasing. Since inflation is growing at a faster rate than the growth of the economy, this results in an overall decrease. This analysis makes sense, yet from what I have been able to experience, the Ticos’ behaviors seem to remain the same. Despite the non-prospering times that face Costa Rica, Ticos’ still find the ability to be friendly and accepting. Not allowing for problems like inflation to ruin the culture they have constructed.

The economies of Central America with the highest GDP’s both have right sided economies. Why do right sided economies see more success when compared to their left-sided counterparts? It turns out that right sided economies have more freedom in their economy. Meaning that the government has less control in the economy. Thus allowing private companies to thrive in a free market. Companies that are able to compete, force them to grow and surpass others in a similar industry. Although this may lead one to think this would foster a culture of competitiveness and cutthroat nature among the locals, Ticos maintain their accepting nature. Along with their willingness to assist one another.

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