San José, Costa Rica – In a significant recognition of its stability and openness, Costa Rica has been ranked among the top 15 nations with the greatest economic freedom in the world, according to the latest “Economic Freedom of the World” report published by the prestigious Fraser Institute of Canada. This position not only places the country in a select global group but also reaffirms its undisputed leadership throughout Latin America.
The report, which analyzes 165 countries and territories, assesses the degree to which a country’s policies and institutions support economic freedom. The ranking is based on five main areas: the size of government, the legal system and security of property rights, the soundness of the currency (“sound money”), the freedom to trade internationally, and the regulation of credit, labor, and business.
The Keys to Costa Rica’s Success
Costa Rica’s rise in the rankings is largely due to its exceptional scores in two critical areas. First, its “sound money” policy, which reflects low inflation and a stable currency, thereby protecting the purchasing power and savings of its citizens. Second, its high score in freedom to trade internationally, thanks to low tariffs and trade barriers, which facilitates the exchange of goods and services with the rest of the world.
Furthermore, the study highlights the robustness of its legal system and the protection of property rights, a fundamental pillar that generates confidence among both citizens and foreign investors.
A Leader in a Turbulent Region
Costa Rica’s leadership in Latin America is particularly noteworthy. While many nations in the region face political and economic instability, Costa Rica’s position stands out as a success story. The country significantly outperforms other regional economies like Chile, Panama, and Uruguay, which also traditionally hold strong positions.
“Costa Rica’s case is an example of how consistent policies of openness and respect for the rule of law yield long-term benefits,” commented Ana Gutiérrez, an economic analyst. “In an uncertain global environment, having a framework that guarantees economic freedom is a country’s most valuable asset for attracting talent and investment.”
Implications and Future Challenges
This ranking has direct and positive implications for the country. It is expected to strengthen the inflow of Foreign Direct Investment (FDI), foster a more dynamic and competitive business ecosystem, and ultimately translate into more and better opportunities for the population.
However, the report also points to areas where challenges remain. Business regulation and government spending efficiency are aspects where Costa Rica still has room for improvement to climb to even higher positions. Maintaining and improving this prestigious ranking will depend on the country’s ability to address these areas while preserving the strengths that make it shine on the world stage today.
