Unemployment is high
Exports recovered quickly
The interest rate bill is large
Electricity generation is green
The share of graduates in STEM is low
The economy's growth potential will fall as the demographic bonus fades
Structural reforms would lift growth and incomes substantially
Export sectors led the recovery
The export basket has become increasingly diversified
The United States and the European Union are the main trading partner
Consumption is held back by rising inflation
Terms of trade are deteriorating
Unemployment has started to fall but participation has not fully recovered
The financial sector appears resilient
The current account deficit is financed with foreign direct investment
External debt has increased and foreign exchange reserves are comparatively low
Inflation remains high
Financial dollarization remains large
Inflation has fallen significantly since reinforcing Central Bank’s independence
The budget deficit has decreased
Current fiscal policies will put public debt on a declining path
Capital expenditure has been largely neglected
Education accounts for a larger share of public spending than in OECD countries
The public employment bill accounts for a large share of government revenues
Public employment reforms in Costa Rica impact high-income households more
Tax revenues are low compared to OECD peers
Costa Rica’s tax structure relies on social security contributions
The tax and transfer system could be more efficient in reducing inequality
Labour productivity is relatively low
Costa Rica has more stringent regulations than any other OECD country
Establishing a company is costly
Regulatory barriers on electricity are high
Informality is high
Employer payroll charges are high in international comparison
Low-income workers face a large tax wedge
High value-added services account for an increasing share of the exports basket
FDI inflows are larger in manufacturing and services
Processed agriculture exports have not picked up
Costa Rica’s infrastructure lags behind
Expanding access to fixed broadband is a challenge
Regulatory barriers on e-communications are high
Fixed broadband subscriptions are expensive
Perceptions about corruption remain higher than in OECD countries
Poverty has remained unchanged and inequality has trended up
Female labour market participation is low
Care responsibilities hinder women’s labour market participation
Costa Rica aims at being carbon neutral by 2050
Electricity is fully renewables-based and oil remains significant in the energy supply
There is a need to improve wastewater collection and treatment
Costa Rica has a strong commitment to education
Pre-school enrolment has significantly increased but enrolment in secondary school remains low
Educational exclusion and grade repetitions cause discontinuity across levels of education
Close to half of all young Costa Ricans have below upper-secondary education, a low share in international comparison
Secondary school educational attainment is essential to find a job
Costa Rica performs below the OECD average in reading, mathematics and sciences
Most students in Costa Rica perform at the two lowest levels in PISA tests
Learning needs are large
Higher family socioeconomic conditions are associated with a better educational performance
School attendance increases with the level of income
Attending preschool increases reading skills
A tight fiscal space limits spending on education
Spending per student is the highest in tertiary education
Tertiary education attainment has increased, but there is scope for improvement
The number of tertiary degrees awarded has stalled recently
Tertiary graduates have the best employment outcomes
Economic returns to higher education in Costa Rica are among the highest across OECD countries
Socioeconomic disparities translate in the access to tertiary education
Costa Rica has relatively few graduates in STEM
Graduates in education and medicine are employed mostly in the public sector
Labour costs are the largest spending component of public universities
The number of postgraduates in STEM areas is insufficient to promote innovation
Input, output and outcome variables in formula-based funding allocation models
Few students choose vocational education in Costa Rica
VET graduates enjoy favourable earnings conditions
Most of VET graduates have a low level of qualification
Lack of skills leaves many vacancies unfilled
Few VET graduates enrol in programmes to acquire digital skills or speak a foreign language
Formal VET programmes lack working experience
Short-cycle vocational programmes in tertiary education are not widespread