PIP: Costa Rica's demographic and economic characteristics are highlighted. Costa Rica's demographic situation is unique in certain respects. Between the late 1950s and the late 1970s, the total fertility rate declined from about 7 to 4 and then stabilized instead of continuing to decline to 2 as expected. This is especially surprising since the level of contraceptive use is similar to that of most European countries. Approximately 2/3 of all couples practice contraception. It is possible that the rate will slowly decline to the expected level, but a delayed decline will ultimately produce a much larger population than initially expected. The demographic situation in Costa Rica is being carefully monitored for insights which might be useful in predicting future fertility patterns in other developing countries. The government of Costa Rica recognizes that family planning is a necessary component of maternal and child health care; however, most family planning services are provided by private organizations. In 1982, population size was 2.6 million, the crude birth rate was 30.7, the crude death rate was 3.9, infant mortality was 19.3, and the rate of natural increase was 2.7%. The population is predominantly Spanish, and the indigenous population totals only 20,000. 48% of the population is urban. Costa Rica has a relatively stable deomocratic government. It relationshiops with other countries are generally peaceful, but tensions between Nicaragua and Costa Rica are increasing. The country's economic situation deteriorated in recent years due primarily to a decline in the price of coffee, the country's principle export commodity. The trade deficit increased markedly, unemployment increased, and income fell sharply. The economic slowdown is now showing signs of a reversal. In 1983 exports, consisting primarily of coffee, bananas, beef, sugar, cane and cacao, totalled US$871 million, and imports, consisting mainly of manufactured goods and equipment, chemicals, fuel, food, and fertilizer, amounted to US$870 million. In 1983 the per capita gross national product was US$1020.^ieng