Costa Rica's economic system is a mixed economy, pairing a private sector of autonomous businesses with a public sector where the state directs certain goods and services. What type of economic system does Costa Rica have? It is mixed and relatively open. The 2026 Index of Economic Freedom scores Costa Rica 68.6, Moderately Free, while Freedom House rates it 91, Free.
What is the economic system of Costa Rica? The economy of Costa Rica is based on a mixed economy. The country’s economic system combines elements of a market economy and a planned economy.
No country is purely capitalist or purely communist.
What do the freedom indexes tell about the economic system of Costa Rica?
For instance, according to the 2026 Index of Economic Freedom, which measures the ability of every human to control his own labor and property, Costa Rica scores 68.6 out of 100 (As of 2026), ranking among the more moderately free economies in the Americas. The country is classified as Moderately Free, indicating a relatively open economy with ongoing structural challenges.
In a similar way, the 2026 Freedom House index evaluates the state of political rights and civil liberties globally. Costa Rica gets a score of 91/100, which qualifies it as Free. Costa Rica is a country where the government does not control what people do for political reasons, and people have the freedom to choose (what, how much, and how to produce, whether to buy or not, selling price, etc.)
The Link Between Public Sector Employment and the Economic System of Costa Rica
An indicator of the extent to which the State is involved in the economy is the number of public sector employees. In Costa Rica, according to ILOSTAT, the number of public sector employees as a percentage of the total workforce is approximately 13.2% (2021). In the country’s mixed economy, the number of public sector employees as a percentage of the total workforce varies based on the specific policies and practices adopted by the State. Some economic activities are left to the private sector while others are under government control. The bigger the public sector the closer the economy is to be a command economy.
What does the biggest company in Costa Rica say about the country’s economic system?
The biggest company in Costa Rica should also be looked at, as well as whether it is a state-owned or private company. In this case, RECOPE (Refinadora Costarricense de Petróleo) is the largest company in Costa Rica by revenue (approximately $1.76 billion, As of 2024). RECOPE is a fully state-owned enterprise that holds a monopoly on the import, refining, and distribution of fossil fuels in the country. Its dominant position in the energy sector illustrates the significant role the Costa Rican state plays in strategic industries, even within the country’s otherwise market-oriented mixed economy.
The historical factors that have influenced the economic system of Costa Rica
The current mixed economy system of Costa Rica in the last century is the result of a combination of multiple factors, including the country’s history of political stability, its commitment to social welfare, and its openness to foreign investment. This has allowed Costa Rica to develop a strong and diversified mixed economy, with a focus on services, manufacturing, and agriculture.
Sources
- List of countries by the public sector size
- ILOSTAT — Costa Rica
- 2026 Index of Economic Freedom — Costa Rica
- Freedom in the World 2026 — Costa Rica
- RECOPE — Refinadora Costarricense de Petróleo
Last updated: June 20, 2026
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