On July 1, 2025, the World Bank upgraded Costa Rica from the “upper-middle‐income” to the “high-income” classification based on its 2024 Gross National Income (GNI) per capita, calculated using the Atlas method World Bank Blogsgbfinancemag.com.
Key Data and Thresholds
- High-income threshold: For fiscal year 2026, countries with a GNI per capita of US $13 935 or more qualify as high-income Wikipedia.
- Costa Rica’s GNI per capita: US $15 620 in 2024, surpassing the threshold by a comfortable margin Q COSTA RICA.
- Growth performance: The economy grew by 4.3 % in 2024, sustained by strong domestic demand, after averaging 4.7 % growth over the previous three years World Bank Blogs.
Drivers of the Upgrade
- Economic stability and growth: Robust expansion in private consumption and investment drove the rise in per-capita income.
- Diversified exports and investment: A focus on high-value services (notably tourism and technology) and an attractive environment for foreign direct investment boosted foreign-exchange inflows.
- Public health and education: Decades of investment in social sectors underpinned a skilled workforce and supported productivity gains.
Implications of “High-Income” Status
- Concessional finance: Costa Rica will lose eligibility for the World Bank’s most concessional loans (IDA), shifting to market-rate financing instruments.
- Global perception and credit: The upgrade enhances the country’s credit profile, potentially lowering sovereign borrowing costs.
- Policy challenges: Despite these gains, inequality remains high (GINI coefficient of 49.2 in 2024), and poverty stood at 24.4 % in 2023. Addressing social disparities and regional development gaps is critical Banco Mundial.
Looking Ahead
This milestone recognizes Costa Rica’s development model—anchored in sustainability, education, and healthcare—but also raises the bar for inclusive growth. Key priorities include:
- Boosting innovation and digital transformation.
- Reducing regional inequalities and improving rural infrastructure.
- Strengthening fiscal discipline to maintain macroeconomic stability.
