OECD Economic Surveys: Costa Rica 2023
Costa Rica recovered well from the pandemic-induced recession. Sustained and resilient
export performance continues to support growth, while consumption is hindered by high
inflation and unemployment. The fiscal situation improved but remains challenging,
requiring sustained efforts to contain spending and boost public sector efficiency
for several years. Maintaining and reinforcing the commitment to foreign direct investment
and trade, which has been key to diversify the export basket, and improving the conditions
for domestic companies to thrive are key challenges to boost living standards and
formal job creation. This would require reducing the regulatory burden, improving
the tax mix, fostering competition in key markets and continuing decarbonisation and
environment protection efforts. Supporting higher female labour participation and
upgrading social protection will help to adapt to ongoing demographic changes and
improve the equality of opportunities. Education and training are a high priority
for Costa Rica that devotes to them one of the highest spending shares among OECD
countries. However, educational outcomes remain poor and firms struggle to fill their
vacancies, particularly in technical and scientific positions. Improving efficiency
and quality of public spending in education is needed to better support growth and
equity.
SPECIAL FEATURES: EDUCATION AND TRAINING; SKILLS
Published on February 06, 2023 Latest available edition in: French, Spanish
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