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Integrated SDG Insights

Costa Rica

UNDP’s Integrated SDG Insights explore how to achieve the SDGs by 2030. So that no one is left behind.

How To Read This Report

‘SDG Insights’ playbooks transcend development “as usual,” and leverages data innovation, AI and systems analysis to chart credible pathways that help countries meet the 2030 Agenda.

SDG Moment This section provides an overview of a country's economic growth trajectory, with new insights on sustainability and inclusiveness of growth pathways.

SDG Trends & Priorities This section builds from the foundation of national SDG progress and uses machine learning to analyse national development ambition with an SDG lens.

SDG Interlinkages Combined, these insights are mapped against SDG interlinkages to define policy choices the accelerate SDG progress, tailored to national context.

Finance & StimulusThese policy choices are made against fiscal constraints and opportunities for stimulus mapped in this section to ensure choices translate to development impact and leave no one behind.

1. SDG Moment

While economic growth is a key element in achieving the SDGs, many countries are intent on moving beyond growth as a yardstick for progress. In the short run, growth enables the SDGs; but in the long run, the SDGs aim to transform the pattern of growth itself.

GDP Growth Pathways

People

Poverty: Percentage of the population under each threshold (PPP$ a day).

Data not available.

Planet

Carbon Intensity: CO2 emissions intensity of GDP (tCO2 per PPP $1,000).

Costa Rica’s economy is projected to experience moderate growth during the 2023-2025 cycle. This pace of growth is aligned to world projections but is still below the country’s growth trajectory projected before the pandemic. Accordingly, the country’s SDG policy space is somewhat restricted, and the focus is on generating conditions that allow the debt growth rate to be lowered, which would have a direct impact on improving the country's macroeconomic environment, lowering the cost of the government financing and contributing directly to mitigating the effects of the downturn on the most vulnerable households and on increasing people’s well-being.

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This moderate economic expansion is expected to reduce the incidence of poverty — though some distributional challenges to accelerate progress remain, such as reducing expenditure and addressing the limited redistributive capacity of the tax policy. Moreover, Costa Rica’s economic growth would be less dependent on carbon emissions as the country’s carbon emissions intensity of GDP is projected to decline at annual rates of 2.5-3% under current conditions.

3. SDG Interlinkages

Maps synergies and trade-offs of national priorities to the most relevant SDG targets to chart policy pathways with most potential to accelerate progress.

5.5: Ensure women´s full participation in leadership and decision-making in political, economic and public life.

Costa Rica has strengthened its legal and regulatory framework to ensure and promote rights and women's empowerment. Laws and policies have been enacted that prohibit gender-based violence, including domestic violence and sexual harassment. In addition, measures have been promoted to encourage the political participation of women, increasing their representation in political decision-making positions. These actions have contributed to improving gender equity in the country and guaranteeing respect for and protection of women's rights.

The country will continue implementing programmes and projects to promote the education and empowerment of women and girls. Policies for equal access to education encourage the participation of girls at all educational levels and eliminate the barriers that limit their development. Likewise, training and entrepreneurship programmes have been established to support the economic autonomy of women, allowing them to access job opportunities and to strengthen their leadership in society. Recently the President of Costa Rica the First National Action Plan on Gender Equality in Climate Action, a public interest document, that aims to articulate a multisectoral response and to reduce the differentiated impacts of the climate crisis on women in six strategic sectors through gender-responsive and gender-transformative actions: in employability; strengthening of economic autonomy; capacity-building and innovation; risk management; the incorporation of an intersectional gender perspective on climate action; and the production of disaggregated information.

8.5: Full employment and decent work with equal pay for all women and men, including for young people and persons with disabilities.

In 2022, the unemployment rate in Costa Rica reached 11.5% (World Bank) and the GDP per person employed slightly fell compared to 2021. Investing in initiatives to boost employment and decent work will help advance on target 8.5 while at the same time helping to ameliorate economic and social inequalities (Target 10.1). Developing sustainable economic activities that generate employment, with a special focus on benefiting traditionally marginalized regions, will also have positive impacts on economic growth (Target 8.1).

If these type of investments ensure women’s participation, these advances could also lead to an increase in women’s empowerment and autonomy (Targets 5.5, 10.2), which in turn could also translate into a higher proportion of women in managerial positions.

Focusing  these efforts on agricultural, commercial and touristic activities, with an emphasis on innovation and the adoption of new technology (Targets 8.2, 9.5), could lead to advancements in inclusion and in resilience to decrease poverty (Target 1.1 and 1.5).

9.5: Enhance research and upgrade industrial technologies encouraging innovation and substantially increase the number of research and development workers.

The Government has set a goal to increase investment in research, development and innovation, going from 0.72% of GDP in 2018 to 0.76% by 2026 – with the objective of generating the necessary conditions to be both a knowledge-based economy and  one generating added value.

This effort is strengthened by financing the main social actors, and by generating other enabling conditions for innovation and development, such as guaranteeing connectivity throughout the national territory.

10.2: Promote universal social, economic and political inclusion, irrespective of age, sex, disability, race, ethnicity, origin, religion, economic or other status.

The reduction of inequalities represents an important challenge for Costa Rica. The National Development and Public Investment Plan 2023–2026 and the National Strategic Plan have established reducing inequality (based on the Gini Coefficient) as a national development goal.

To this end, the Government has committed to applying a multidimensional approach to understanding the basic conditions that generate inequality in the country in order to address the territorial and structural challenges, strengthening efforts and actions where there is a higher incidence of vulnerability and focusing public policies on populations that face more vulnerable situations.

16.6: Develop effective, accountable and transparent institutions.

The country has made efforts at consolidating an Open State and, in that regard, has promoted institutional reforms at all levels. Today the fight against corruption in the public service sector and in the context of the Open State are two key approaches adopted in the National Development and Public Investment Plan 2023-2026.

Additionally, Costa Rica has worked to strengthen the judicial system to guarantee impartiality and efficiency in the administration of justice. Training programmes and technological modernization have been implemented in the courts to expedite judicial processes and to improve transparency. In addition, measures have been established to prevent corruption and promote ethics in the judicial system, which contributes to the construction of solid and reliable institutions.

The country has promoted citizen participation and access to justice as fundamental pillars for strengthening democracy and peace. Initiatives have been promoted to foster the participation of civil society in decision-making and in the accountability of institutions. Likewise, human rights education and dissemination programmes have been implemented, seeking to empower citizens and to provide them with the necessary tools to access justice effectively.

15.1: By 2020, ensure the conservation, restoration and sustainableuse of terrestrial and inland freshwater ecosystems and their services.

By prioritizing Target 15.1 in its 2021-2025 National Development Plan, Ecuadorreaffirmed the significance of protecting and preserving terrestrial ecosystems andtheir biodiversity. This includes recognizing that the investment projects intendedto fulfil Target 15.1 will not only contribute to achieving the SDGs 13, 14 and 15, butwill also help restore ecosystems that underpin the availability and comprehensivemanagement of water resources (SDG 6) and promote their sustainable use (Target12.2). Additionally, it will also foster the generation of new energy from renewablesources (Target 7.2).

To this end, Ecuador seeks to strengthen the management of the National Systemof Protected Areas through its 2022-2032 Strategic Plan and the implementationof the National Forest Restoration Plan 2019-2030. These instruments serve as thetechnical, legal and financial foundation for executing local forest restorationprocesses with a landscape vision, with an overall goal of covering 30,000hectares through its projects. Considering that the proportion of national territoryunder conservation or environmental management, as of 2022, stands at 22.1%, itis necessary to mobilize additional financial resources from various sources andestablish robust governance (Target 17.3) to intensify the care of protected areas.This ensures the conservation of natural and cultural resources, genetic flows, theprovision of environmental services for the benefit of the population and thealignment of policies on the ground.

Futures Scenarios

SDG Push is a futures scenario based on 48 integrated accelerators in the areas of Governance, Social Protection, Green Economy and Digital Disruption. It uses national data to explore the impact on human development by 2030 and 2050 across key SDG indicators. It does this by using ‘International Futures,’ a systems model designed to explore interactions across development systems.

Poverty <$1.90 Per Day (Number of People)

Malnourished Children Under 5 (Number Of Children)

Malnourished Children Under 5 (Number Of Children)

4. Finance and Stimulus

Many countries are facing reduced fiscal space, high debt levels, rising interest rates and downgrades on credit ratings. Fiscal and financial constraints tend to slow or even reverse SDG progress.

Costa Rica's gross government debt is projected at 63.5% of GDP in 2023 and thus 5.3 percentage points (pp) below the emerging market and middle-income economies (EMMIE) group’s average of 68.8%. With a projected 15.5% of GDP this year, Costa Rica collects only three fifths of the average revenue of the EMMIE country group with 26%.

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Costa Rica's public external debt servicing relative to revenue, at a projected 15.9% this year, is higher than the average EMMIE country by 3.6 pp. The country’s credit rating is assessed as ‘highly speculative’ and thus below EMMIE average.

SDG Stimulus

The UN Secretary General’s SDG Stimulus Plan lays out a blueprint for action within the existing financial architecture. It includes:

  • Providing liquidity to support recovery in the near term
  • Enhance debt relief for vulnerable countries.​
  • Expanding development financing by MDBs
  • Align financial flows with the SDGs and Paris Agreement, according to country-level priorities and needs, for example through the rollout of the UN Integrated National Financing Framework (INFFs).

Given the projected fiscal and financial constraints faced by

Costa Rica

possible funding options for the investments derived from the identified interlinkages are as follows:

  • Tax and revenue reform
  • Debt for SDGs
  • Climate finance
  • Blended and public-private finance
  • SDG-aligned business environment and investment
  • Accessing financial markets and insurance
  • Remittances, philanthropy and faith-based financing

Methodology & Data Sources

Click here to view the Methodological Note for the Integrated SDG Insights.

This report is the result of a global exercise carried out using artificial intelligence to identify SDG priorities based on 10 national government documents, together with SDG progress and SDG interlinkage analysis. The implementation and monitoring of the 2030 Agenda in Argentina should be consulted in the Country Reports and National Voluntary Reports.

SDG Moment

Methodology
Assesses challenges and opportunities in national growth trajectories with insights on environmental sustainability and inclusiveness.

Data Sources
Future trajectories to 2025 are based on IMF-WEO GDP projections, distributions of per capita income or consumption from the World Bank, and CO2 emissions from the Global Carbon Budget 2022 and EDGAR (JRC and IEA).​

Trends & Priorities

Methodology
SDG trends tracks progress from 2015 to date for the 231 indicators. National priorities are analysed using machine learning to reveal the most prominent SDGs referenced in national policy documents.

Data Sources
SDG trends tracks progress from 2015 to date for the 231 indicators. National priorities are analysed using machine learning to reveal the most prominent SDGs referenced in national policy documents.

Interlinkages

Methodology
SDG trends tracks progress from 2015 to date for the 231 indicators. National priorities are analysed using machine learning to reveal the most prominent SDGs referenced in national policy documents.

Data Sources
The exercise globally considered a total of 454 documents published from 2015 to August 2022. (Miola et al., 2019 updated in 2021-2022)​

Finance & Stimulus

Methodology
Provides insight into indicators of fiscal and financial stress with options (INFF) for stimulus and other means to accelerate progress.

Data Sources
Most recent resource data from UNU-WIDER GRD (between 2018 and 2021), debt and revenue from IMF WEO (between 2020 and forecasts for 2023), external debt from IDS (2023), yields from Haver Analytics (8 June 2023), credit ratings from S&P, Moodys and FITCH (2023), and DSA ratings from World Bank/IMF (31 May 2023).