Friday, May 8, 2026.
Costa Rica
Costa Rica has long projected the image of stability in Central America, a country associated with ecotourism, foreign investment, environmental leadership, and democratic continuity. Yet beneath that image, the country is entering one of the most consequential transitional periods in its modern history.
This week, our focus turns toward Costa Rica as shifting political dynamics, rising security concerns, organized crime expansion, and mounting institutional tensions begin reshaping the national landscape. Once viewed almost exclusively as the “safe haven” of the region, Costa Rica now faces growing pressure from transnational criminal organizations using the country as both a logistics and export hub for narcotics trafficking. Public concern over crime and insecurity has rapidly become one of the dominant political drivers in the country.
Politically, Costa Rica has entered a new phase following the February 1, 2026 national elections, where Laura Fernández Delgado, closely aligned with outgoing President Rodrigo Chaves, secured victory amid a campaign heavily centered on security, governance reform, and institutional change. The current administration’s strong anti-crime messaging and growing criticism of the judiciary have generated both domestic support and international concern regarding democratic balance and institutional independence.
At the same time, Costa Rica continues to remain one of the strongest tourism and residency destinations in Latin America. Its renewable energy leadership, relatively educated workforce, strategic geographic position, and continued appeal to expatriates and investors maintain important economic advantages. Tourism remains a central pillar of the economy, while foreign residency demand continues to grow among North Americans and Europeans seeking political stability, environmental quality, and lifestyle migration opportunities.
This week’s review will examine Costa Rica through multiple lenses: geopolitical positioning, election outcomes and political continuity, organized crime trends, tourism dependency, energy and infrastructure development, foreign investment climate, residency migration patterns, and the broader implications for regional business and risk advisory operations throughout Central America.
Brett Mikkelson
Founder, B.M. Investigations, Inc. – Private Investigations in Panama
TOP NEWS and TIDBITS:
Costa Rica Achieves an Unprecedented Rise of Women in Political Power Despite the Conservative Surge
This May 8 will mark an unprecedented moment in the history of Costa Rica: a woman serving as President of the Legislative Assembly will swear in another woman as President of the Republic, Laura Fernández Delgado, only the second woman to govern the Central American country, which is nevertheless experiencing a conservative surge under outgoing President Rodrigo Chaves Robles.
That moment will be possible because this Friday, ruling-party attorney Yara Jiménez becomes the fourth woman to assume the presidency of the Legislative Assembly. The election of the attorney, who served as Secretary of Government under Rodrigo Chaves until this month, is the result of the sufficient majority held by the Sovereign People’s Party (PPSO), which secured 31 seats in the February elections, allowing it to control numerous legislative decisions. It also reflects a historic milestone in Costa Rican politics: the highest number of female legislators in the country’s two centuries of independence.
With 30 women and 27 men, the unicameral Legislative Assembly for the 2026–2030 term consolidates the trend toward greater female participation in national political life. Only countries with authoritarian regimes surpass Costa Rica in female parliamentary representation: Rwanda with 63.8%, Cuba with 57.2%, and Nicaragua with 55%, according to the Inter-Parliamentary Union (IPU). Women also constitute the majority within the PPSO caucus, while the main opposition party, the National Liberation Party (PLN), has only one more man than woman. The leftist Broad Front also has a female majority, along with two single-member caucuses led by women. One of them is Claudia Dobles, former First Lady during the administration of Carlos Alvarado (2018–2022).
After women’s suffrage was incorporated into the Constitution in the mid-20th century and three women were elected in 1953 — and only one in 1962 — Costa Rica gradually took steps to reduce gender gaps in positions of power. In 1986, the male-dominated Legislative Assembly, influenced by President Óscar Arias Sánchez, elected the first woman to preside over the legislature, Rose Marie Karpinsky. In the following 40 years, only two more women reached that position, although female representation steadily increased due to equality initiatives and legislation requiring political parties to maintain gender parity in candidate lists.
This is how 2026 arrived to mark the milestone highlighted by Eugenia Zamora, President of the Supreme Electoral Tribunal (TSE), during her speech delivering credentials to the newly elected legislators. “It will be the first legislative body in our history composed mostly of women, the consequence not of chance or spontaneous circumstances, but of decades of struggle for a more democratic and more equal society.” Zamora herself became the first woman to lead the electoral authority in 2021.
What some sectors celebrate as an achievement is not necessarily viewed the same way by the ruling movement that embodies this increased female representation. This has been explicitly stated by Pilar Cisneros, head of the ruling-party caucus during the Chaves administration, and in some ways echoed by Fernández herself. She rejected the feminine form of the title and chose to be called “president” rather than “presidenta,” as she will be sworn in on May 8. The 39-year-old political scientist takes power as a close ally of Chaves following elections widely viewed as a plebiscite on the 2022–2026 administration, with stronger support among men and older voters.
“Inclusive language is associated with progressivism and is therefore targeted by this conservative sector,” explained María José Cascante, a political scientist and researcher at the University of Costa Rica specializing in gender issues. “It is not superficial; it is part of the cultural battle and something that touches deep sensitivities.”
Cascante celebrates the rise in female representation as the result of affirmative policies, international commitments, and domestic activist pressure, while also warning of the strong presence of a conservative movement whose discourse explicitly rejects so-called “gender ideology,” a pejorative phrase commonly used by religious and allied groups. That sector is now part of the ruling coalition, as demonstrated by new meetings between Chaves and Fernández with evangelical Christian leaders.
The leading figure of that conservatism is no longer a specific neo-Pentecostal religious party such as the one once led by preacher Fabricio Alvarado Muñoz, whose movement was eventually absorbed into “Chavismo.” They remain allies, as legislator Cisneros has openly acknowledged, but now under the dominant political leadership of Chaves.
Alvarado, who faced progressive candidate Carlos Alvarado in the 2018 presidential runoff, became the focus of controversy this week in the Legislative Assembly amid efforts to approve sanctions against him over sexual harassment allegations filed by a former adviser. The ruling-party bloc, however, avoided forming quorum to prevent the vote from taking place, despite the fact that Fernández herself accused him during the campaign of sexually harassing her as well.
“I will never forget when he cornered me in an office under the false promise of giving me a Bible. I will never stop speaking out for the thousands of Costa Rican women who have been victims of disgusting behavior,” Fernández said during a live television appearance. However, after the elections and the confirmation of the ruling party’s victory, that feminist-oriented message faded, and meetings with evangelical leaders resumed once again.
Wave of Violence Hits Costa Rica: Two Burned Bodies Found Inside a Vehicle
Two burned bodies were discovered on the night of Saturday, May 2, inside a vehicle destroyed by fire in the La Poza de los Abuelos area of Paso Canoas, in the canton of Corredores, Puntarenas Province, Costa Rica. The discovery, reported shortly after 9:00 p.m., marked the beginning of a new double homicide investigation, according to information from the Organismo de Investigación Judicial (OIJ), as violence linked to organized crime continues generating concern throughout the region.
After receiving the alert during the evening hours, Public Force officers arrived at the scene where the vehicle was still engulfed in flames on a roadway in the area. During the initial inspection, authorities discovered the burned remains of the victims in the back seats of the vehicle. According to the OIJ, the remains were later transferred to the judicial morgue, where forensic examinations will be conducted to determine both the identities and genders of the victims.
The investigation was assigned to OIJ agents from Ciudad Neily, who carried out a detailed inspection of the scene. Authorities also ordered the burned vehicle transported to investigative facilities in an effort to recover additional evidence and clarify the circumstances surrounding the incident. The case remains under investigation, and authorities have not yet identified the victims or determined the whereabouts of any suspects.
The events in Paso Canoas form part of a growing wave of violence in Puntarenas Province, where organized criminal activity has been linked to several recent incidents.
The San Mateo Discovery: A Triple Homicide Linked to Criminal Activity
On March 30, authorities registered a triple homicide in San Mateo involving the disappearance of a businessman from the tourism sector. According to local media reports, the victim was identified as Iván Horacio Jackson Núñez, who had last been seen in Puntarenas two days before his body was discovered.
At the scene where police located the bodies, authorities found three victims bound, with plastic bags over their heads and visible signs of assault, near an overturned gray Toyota Hilux, according to the OIJ.
Evidence collected in San Mateo points toward a suspected settling of accounts connected to illicit activities. The investigation led OIJ agents to conduct raids on several properties in the region, where authorities seized long firearms and significant quantities of narcotics. The operation strengthened the hypothesis that the triple homicide may be linked to drug trafficking, as police sources confirmed that individuals connected to the victims had previously appeared in earlier criminal investigations.
The identities of the other two victims found alongside Jackson Núñez remain under forensic analysis as authorities attempt to formally identify them and establish the broader circumstances surrounding the killings. The incident prompted an increased police deployment in Puntarenas and surrounding communities aimed at containing the escalation of violence in the region.
Police sources indicated that both cases remain under active investigation and that, as of now, no arrests have been reported.
Forensic Investigation and Expanded Judicial Operations
Authorities emphasized the challenges involved in identifying the victims in both cases. In the Paso Canoas double homicide, the condition of the bodies following the fire requires extensive forensic examination before investigators can make further progress. The OIJ is currently operating under the preliminary hypothesis that the killings are connected to the recent criminal dynamics affecting the region, although investigators have not ruled out any lines of inquiry.
In the San Mateo case, the discovery of firearms and narcotics during the raids allowed investigators to reconstruct part of the victims’ prior movements and added further evidence supporting the theory of a criminal retaliation or cartel-related execution.
Costa Rica Must Embrace a New Approach to Sustainable Tourism
Costa Rica will need to reassess the path forward regarding the promotion of green or sustainable tourism, as this positioning has lost a certain degree of effectiveness due to various factors within the current global and domestic environment.
Although tourism in the Central American country continues to maintain a strong sustainability appeal, “changes in the environment, geopolitics, the COVID-19 pandemic, the influence of artificial intelligence, and other situational factors mean that this issue is no longer at the forefront, making a new differentiating approach necessary,” warned Hans Pfister, president of the CANAECO.
According to CANAECO, in an era where every global destination claims to be sustainable, Costa Rica faces a critical ecotourism paradox. For many years, Costa Rica was considered the gold standard, but as international competition intensifies, the country must ask itself: Has Costa Rica reached its peak?
To maintain that leadership, the country can no longer rely solely on its past reputation. This evolution requires moving beyond the “green brand” and addressing the growing mirror effect.
There is often a disconnect between how the world sees Costa Rica — as a unique, original, and sustainable paradise — and how Costa Ricans see themselves, facing the logistical and operational realities of maintaining that image.
For Pfister, it is no longer enough to simply claim to be sustainable, green, or natural. “It must be demonstrated,” he emphasized, warning against what is commonly referred to as “greenwashing,” where a company, brand, or government presents itself as environmentally friendly while its actual environmental impact remains negative or is largely a marketing strategy.
Instead, the expert recommends approaches such as “off the beaten path” tourism, which involves moving away from traditional tourist routes and promoting a more integrated experience of a specific region or area.
“In promoting sustainable tourism, it is no longer enough to say that we recycle and are environmentally friendly; we must do more, become more sophisticated, and above all, tell success stories,” Pfister added.
For CANAECO, rather than reinventing ecological or sustainable tourism, the priority should be to strengthen what Costa Rica is already doing well: promoting tourism that respects nature, educates and interprets the environment while incorporating the human factor and local communities, while simultaneously raising the industry’s standards of comfort, service quality, and sophistication in areas such as food and beverage services, tours, guides, and other sectors within the tourism industry.
United States Revokes Visas of Board Members of La Nación in Costa Rica
The board of directors of La Nación confirmed this Saturday, May 2, that the government of United States revoked the tourist visas of several of its members, although no official explanation has yet been provided regarding the reasons behind the decision.
In a statement, the newspaper acknowledged and respected the sovereign authority of the United States to determine who may enter its territory.
However, the publication described the measure as unprecedented in the country’s recent history, noting that visas had been revoked from members of the board of an independent newspaper.
Among those affected are Board President Pedro Abreu Jiménez and the newspaper’s director, Carmen Montero Luthmer. According to the statement, none of the individuals involved have received formal notification detailing the basis for the revocation.
The newspaper also questioned the fact that information regarding the visa cancellations became known through unofficial channels, as has occurred in several recent cases in Costa Rica. In its view, the practice raises concerns within a democratic system that promotes transparency and due process.
Despite the incident, the company reaffirmed that the decision would not affect its editorial line or its commitment to independent journalism, which it says has characterized the newspaper throughout its 79-year history.
A Series of Visa Revocations in Costa Rica
The La Nación case adds to a broader series of visa revocations affecting Costa Rican public figures in recent months. Among the most notable cases is former president and Nobel Peace Prize laureate Óscar Arias Sánchez, who lost his U.S. visa in April 2025 after publicly criticizing the American government.
Former legislators, judges, and government officials have also been affected by similar measures, several of whom have maintained critical positions toward outgoing President Rodrigo Chaves Robles.
Other individuals reportedly impacted include former Legislative Assembly President Rodrigo Arias, Justice Paul Rueda, businessman Leonel Baruch, and constitutional magistrate Fernando Cruz Castro.
Some of those affected have suggested that the decisions may be linked to their political positions or public criticism, although U.S. authorities have not officially confirmed any political motivation behind the visa revocations.
Costa Rica Economy: 2026–2027 Growth Forecast
The economy of Costa Rica is emerging as one of the most resilient and dynamic in the Latin American region for the coming two-year period. According to the latest projections, the country is expected to maintain sustained expansion, with estimated average growth of 3.5% for the 2026–2027 period. This outlook not only reflects a consolidated recovery following the global shocks of recent years, but also a structural transformation toward higher value-added sectors.
For investors, analysts, and citizens, this figure represents more than just a cold statistic; it serves as an indicator of a favorable environment for investment, consumption, and the sustainability of public finances. Understanding the pillars supporting this growth is essential for navigating the opportunities offered by the Costa Rican market in the coming years.
The Pillars of Growth: What Is Driving Costa Rica’s GDP?
The projected economic dynamism for 2026 and 2027 is supported by a combination of domestic and external factors that have allowed Costa Rica to differentiate itself from regional peers.
Costa Rica has consolidated its position as a strategic hub for medical device manufacturing and high-technology corporate services. Foreign investment attraction not only remains strong, but is also diversifying into sectors such as semiconductors and cybersecurity. This steady inflow of capital guarantees the creation of high-quality jobs and export growth, serving as the principal engine of GDP expansion.
Despite volatility in commodity prices and global transportation costs, Costa Rica’s export sector has demonstrated remarkable adaptability. Growth is no longer driven solely by traditional exports such as coffee and bananas, but increasingly by digital services and consulting exports, which now represent a significant portion of the country’s trade balance.
Monetary Policy and Inflation Control
One of the determining factors in achieving the projected 3.5% growth rate is the management of the Banco Central de Costa Rica (BCCR). Price stability has become one of the country’s greatest strengths.
By 2026, inflation is expected to remain within the target range, providing certainty for household consumption and corporate expansion plans. Controlled inflation also allows for a more flexible interest rate policy, encouraging productive lending and real estate market activity — both key components in sustaining domestic demand during the projected period.
Structural Challenges and the Labor Market
Although the projections are optimistic, the road toward 2027 is not without challenges. Economic growth must become more inclusive to ensure prosperity reaches all regions of the country beyond the Greater Metropolitan Area (GAM).
Skills Gap: Demand for personnel in technology sectors at times exceeds the supply of qualified professionals. Investment in technical education and bilingualism will be crucial for Costa Rica to fully absorb the projected investment inflows.
Infrastructure: The modernization of ports, highways, and the implementation of 5G networks remain pending tasks that could either accelerate or hinder projected growth. Deficient infrastructure increases logistical costs and reduces the competitiveness of local businesses.
The Impact of Nearshoring on the Costa Rican Economy
Costa Rica is among the largest beneficiaries of the nearshoring phenomenon in the Americas. Its proximity to the U.S. market, combined with political stability and legal certainty, makes the country an attractive destination for companies seeking to relocate operations outside Asia.
For the 2026–2027 period, the relocation of shared service operations and research and development (R&D) centers is expected to contribute at least an additional 0.5% to annual GDP growth. This trend not only injects capital into the economy, but also accelerates technology transfer and improves national productivity standards.
Sustainability and the Green Economy: Costa Rica’s Signature
Projected growth also carries a strong environmental component. Costa Rica continues leading the decarbonization agenda, attracting a type of “ethical” investor seeking destinations aligned with ESG (Environmental, Social, and Governance) criteria.
Investment in renewable energy and sustainable tourism will continue serving as a cross-cutting pillar of economic growth. In 2026, tourism is projected to reach record visitation levels, particularly among high-income travelers seeking nature-oriented experiences, directly injecting foreign currency into rural and coastal economies.
Fiscal discipline adopted in recent years has improved the country’s risk ratings among international organizations. By 2026, a gradual reduction in the debt-to-GDP ratio is expected, freeing national budget resources for social investment and public infrastructure projects.
Maintaining a primary fiscal surplus will be key to allowing the government to finance projects without placing upward pressure on interest rates, enabling the private sector to remain the primary driver of economic expansion throughout 2027.
Costa Rica’s economy has entered a mature cycle in which 3.5% growth is considered both achievable and realistic. The combination of responsible monetary policy, a diversified export sector, and the strategic use of nearshoring places Costa Rica in an enviable position within the Latin American landscape.
However, the success of 2026 and 2027 will depend on the country’s ability to implement pending reforms in education and infrastructure. If Costa Rica succeeds in narrowing inequality gaps and strengthening logistical competitiveness, the country will not only meet these projections but could also lay the foundation for an unprecedented decade of prosperity. The future is green, digital, and above all, stable.
Solar Innovation for the Energy Future of Costa Rica
Costa Rica has historically been a regional benchmark in renewable energy. However, amid increasing climate variability and growing pressure on water resources, the country now faces the challenge of further diversifying its energy matrix without compromising sustainability, security, or competitiveness.
In this context, initiatives such as ACCIÓN Clima III are promoting the exploration of innovative solutions aimed at strengthening the national electrical system. One particularly promising approach is the incorporation of emerging solar technologies, including floating solar energy.
Driving the Energy Transition Through ACCIÓN Clima III
ACCIÓN Clima III is an international cooperation initiative designed to support countries in implementing concrete climate change mitigation measures. Within its energy component, the project focuses on promoting clean and efficient technologies, strengthening technical and institutional capabilities, and supporting evidence-based strategic decision-making.
In Costa Rica, this effort includes collaboration with key actors in the energy sector, including the Instituto Costarricense de Electricidad (ICE), to evaluate new renewable energy alternatives capable of complementing existing generation sources.
Solar Energy in Costa Rica: Progress and Opportunity
Although Costa Rica already possesses a predominantly renewable energy matrix based largely on hydroelectric generation, solar power has gained increasing prominence in recent years.
Its growth responds to several needs:
- diversification of the energy matrix,
- reduction of dependence on hydrological resources, particularly during droughts or low-rainfall periods,
- and improved resilience against extreme climate events.
The current environment, shaped by phenomena such as El Niño and changing precipitation patterns, has made the integration of complementary energy sources like solar even more important, particularly during periods when hydroelectric generation is constrained.
Floating Solar Energy: A Strategic Innovation for Costa Rica
In response to these challenges, ACCIÓN Clima III is supporting the evaluation of emerging technologies, including floating solar energy — a system involving the installation of photovoltaic panels on water surfaces such as hydroelectric reservoirs.
This technology represents not only a technical innovation, but also a strategic opportunity aligned with the needs outlined in the 2024–2040 Electricity Generation Expansion Plan developed by ICE.
Floating solar technology offers multiple benefits, including:
- Use of Existing Infrastructure: Reservoir surfaces can be utilized without requiring additional land development.
- Greater Energy Efficiency: The cooling effect of water improves photovoltaic panel performance.
- Reduction of Water Evaporation: The technology contributes to water conservation, particularly important during drought conditions.
Globally, floating solar technology has experienced substantial growth, positioning itself as a strategic alternative for countries facing high population density or land-use limitations.
Synergies with Hydroelectric Power: More Than Shared Space
One of the most strategic aspects of floating solar energy is its capacity to integrate directly with hydroelectric generation, creating hybrid systems that maximize the use of available resources.
In Costa Rica, where hydroelectric reservoirs remain central to the electrical system, this integration enables:
1. Dual Use of Water and Energy Resources
Reservoirs cease being solely water reserves for hydroelectric generation and become platforms for solar energy production as well, multiplying their energy value without altering their primary function.
2. Complementary Energy Management
Solar generation occurs primarily during daylight hours, while hydroelectric output can be regulated according to demand. This allows coordinated operation where solar energy reduces the need to release water during sunny periods, preserving water resources for peak demand or lower solar generation periods.
3. Greater System Flexibility and Resilience
The combination improves overall electrical system management, especially during droughts or periods of climate variability, by optimizing stored water usage.
4. Optimization of Existing Infrastructure
Because floating solar projects are located on reservoirs already connected to the electrical grid, they can leverage existing transmission lines, access routes, operational infrastructure, and installed technical capabilities. This reduces implementation costs and accelerates project deployment.
5. Additional Environmental Benefits
Partial coverage of reservoir surfaces may reduce water evaporation and limit algae growth, contributing to improved water resource management.
Field Work: Applying Knowledge to National Realities
As part of this initiative, a field visit was conducted in Costa Rica during March 2026 with the participation of internationally recognized consultants, including:
- Fraunhofer Institute for Solar Energy Systems, one of the world’s leading solar energy research centers,
- and Ecovision, a firm specializing in photovoltaic project development and advisory services.
During the visit, several potential sites for floating solar implementation were evaluated. The work allowed experts to analyze the specific characteristics of reservoirs, identify technical, environmental, and operational conditions, and assess potential limitations and implementation challenges. Such on-site analysis is essential for transforming theoretical potential into viable projects adapted to local conditions.
The technical visit concluded with a workshop focused on knowledge exchange and feedback, covering topics such as:
- fundamentals and best practices for floating solar projects,
- operation and maintenance of both floating and land-based photovoltaic systems,
- and technical recommendations for structuring bidding processes and future project development.
These collaborative forums not only facilitate knowledge transfer, but also strengthen local technical capabilities and align strategic criteria among stakeholders in the energy sector.
Transitioning Toward a More Renewable Future
The incorporation of emerging technologies such as floating solar energy represents a concrete opportunity for Costa Rica to continue leading in renewable energy while adapting to the growing challenges of climate change.
The work supported by ACCIÓN Clima III demonstrates that the energy transition depends not only on large-scale political decisions, but also on collaborative processes, rigorous technical analysis, and the exploration of innovative solutions.
In a global environment where sustainability and resilience are becoming increasingly important, initiatives like this help pave the way toward a more diversified, efficient, and future-ready energy system.
