The economy of Costa Rica remains basically agricultural, although manufacturing industries have been expanding since the early 1960s. In an effort to introduce economic variety, more emphasis has been given to the raising of farm animal. Overall living conditions are high by Latin American standards, and the nation has a large middle class. Between 1970 and 1987, Costa Rica received about $1.22 billion in loans and grants from the United States. In 1998 annual budget figures showed revenues of $ 2.9 billion and expenditures of $ 3 billion. Costa Rica is neither valuable, as its name "Valuable Coast" implies, nor as poor as many of its neighbours. The nation's wealth is better distributed among all social classes than elsewhere in Central America. Through the 1980s, the standard of living declined somewhat as a result of economic stagnation and inflation, and Costa Rica lost to Panama its place as the Central American nation with the highest per capita gross national product.

Costa Rica's basically stable economy depends on tourism, agriculture, and electronics exports. Poverty has been substantially reduced over the past 15 years, and a strong social safety net has been put into place. Foreign investors remain attracted by the nation's political stability and high education levels, and tourism continues to bring in foreign exchange. orthodox export sectors have not kept pace. Low coffee prices and an overabundance of bananas have hurt the agricultural sector. The government continues to grapple with its large deficit and massive internal debt and with the need to modernize the state-owned electricity and telecommunications sector.