In the last two decades, the population of Costa Rica has experienced a significant decline in its birth rate. In 2002, the crude birth rate was 1.43%, while in 2023 it fell to 0.98%, according to data from the National Institute of Statistics and Census, INEC.
This decline has been accompanied by a decrease in the fertility rate, which went from 2.5 children per woman in 1990 to 1.29 in 2022, below the population replacement level of 2.1 children per woman, according to INEC data.
Projections for the next 20 years
According to INEC estimates, the population aged 65 and over in Costa Rica is expected to double in the next 20 years. Life expectancy at birth will reach 84.27 years in 2050 and 89.57 in 2100. In addition, the total fertility rate will continue to decline until it reaches a minimum of 1.14 children per woman in 2031, so the country’s population will begin to decline in 2045.
Impact on consumption, the Costa Rican Social Security Fund (CCSS) and pensions
The decline in birth rates and population aging have significant implications in various aspects:
Consumption: An aging population can reduce the demand for goods and services, affecting key economic sectors.
CCSS: The decline in the working-age population reduces the contributor base, which can affect the financial sustainability of the CCSS.
Pensions: With fewer active workers, the pension system could face difficulties in financing the pensions of a growing retired population.
Possible solutions to the decline in Costa Rica’s population
To mitigate these challenges, the following strategies could be considered:
Promote birth rates: Implement policies that encourage families to have more children, such as child subsidies, tax benefits, and maternity and paternity support programs.
Immigration: Promote the immigration of young workers to balance the population pyramid and expand the contributor base.
Labor and pension reforms: Adjust labor and pension policies to adapt to the new demographic reality, including the review of the retirement age and the promotion of labor participation of older adults.
Living the family in a big way
In order to promote, represent, support and defend large families in Costa Rica as a pillar and fundamental instrument for social and economic development, the Association of Large Families Five and More was recently established.
The association is chaired by Jorge Vieto, who has the collaboration of volunteers such as María José Fernández, Tatiana Alfonso and Fabián González among others.
This non-profit civil organization is based on the premise that this first social nucleus is a source of essential values, which contribute to developing Costa Rica and which will seek to stop the demographic winter that the country is currently experiencing.
