President Rodrigo Chaves governs in a populist and confrontational style, challenging political parties, the press and the system of checks and balances. Social and political polarization has intensified, while public trust in institutions and support for democracy remain low. Despite this, Chaves maintains high levels of public approval, while low voter participation signals potential vulnerability to democratic erosion.
Costa Rica remains on its path toward fiscal and economic stability. Poverty has declined and growth continued, but income inequality persists. A two-tier labor market disproportionately favors certain industries and skilled workers, while unskilled labor and disadvantaged groups continue to face structural barriers.
Rising crime and homicide rates, driven by Costa Rica’s role as a drug transshipment point, have reduced perceptions of public safety and affected tourism. Political consensus is limited, as the president’s confrontational leadership style hinders coalition-building and complicates policymaking.
