Costa Rica & World Bank: Fiscal Management & Job Growth
- WASHINGTON, D.C., September 30, 2025 - The World Bank's Executive Board approved a US$300 million loan today to bolster Costa Rica's fiscal management and foster sustainable economic growth,...
- The loan will finance initiatives aimed at strengthening public financial management,enhancing the efficiency of tax management,and promoting investments in sectors with high growth potential and environmental sustainability.
- "This operation is based on trust and a shared commitment to economic growth and environmental protection," said carine Clert, Country Manager for Costa Rica and El Salvador at...
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World Bank Approves $300 Million Loan for Costa rica’s Lasting Progress
Published September 30, 2025
WASHINGTON, D.C., September 30, 2025 – The World Bank’s Executive Board approved a US$300 million loan today to bolster Costa Rica‘s fiscal management and foster sustainable economic growth, with a focus on job creation and improved employment quality, particularly in rural and coastal regions. The operation is designed to support Costa Rica’s transition to a climate-resilient economy.
The loan will finance initiatives aimed at strengthening public financial management,enhancing the efficiency of tax management,and promoting investments in sectors with high growth potential and environmental sustainability. These include eco-tourism, sustainable agriculture, and renewable energy.
“This operation is based on trust and a shared commitment to economic growth and environmental protection,” said carine Clert, Country Manager for Costa Rica and El Salvador at the World Bank. “As the country moves toward a climate-resilient economy, these initiatives help create sustainable livelihoods and improve job stability.”
Loan Details and Terms
The US$300 million operation is a variable-rate loan with a final maturity of 33.5 years, including a six-year grace period. This structure provides Costa Rica with adaptability in managing its debt obligations while supporting long-term investments.
| Loan Amount | interest Rate | Maturity | Grace Period |
|---|---|---|---|
| US$300 million | Variable | 33.5 years | 6 years |
Costa Rica’s Economic Context and the Need for support
Costa Rica has long been a regional leader in environmental sustainability and social development. However, like manny countries, it faces economic challenges, including fiscal deficits and the need to diversify its economy. The COVID-19 pandemic substantially impacted the tourism sector, a major contributor to Costa Rica’s GDP. According to CEIC Data, tourism contributed approximately 8.4% to Costa Rica’s GDP in 2019, falling to around 4.5% in 2020.
This World Bank loan is intended to help Costa Rica address these challenges by strengthening its public finances and promoting investments in sectors that can drive sustainable and inclusive growth. The focus on rural and coastal areas is particularly critically important, as these regions frequently enough experience higher rates of poverty and unemployment.