The sovereign state is a unitarypresidentialconstitutionalrepublic. It has a long-standing and stable democracy and a highly educated workforce. The country spends roughly 6.9% of its budget (2016) on education, compared to a global average of 4.4%. Its economy, once heavily dependent on agriculture, has diversified to include sectors such as finance, corporate services for foreign companies, pharmaceuticals, and ecotourism. Many foreign manufacturing and services companies operate in Costa Rica's Free Trade Zones (FTZ) where they benefit from investment and tax incentives.
San José (Spanish: [saŋ xoˈse]; meaning "Saint Joseph") is the capital and largest city of Costa Rica, and the capital of the province of the same name. It is in the center of the country, in the mid-west of the Central Valley, within San José Canton. San José is Costa Rica's seat of national government, focal point of political and economic activity, and major transportation hub. San José Canton's population was 288,054 in 2011, and San José's municipal land area is 44.2 square kilometers (17.2 square miles), with an estimated 333,980 residents in 2015. Together with several other cantons of the central valley, including Alajuela, Heredia and Cartago, it forms the country's Greater Metropolitan Area, with an estimated population of over 2 million in 2017. The city is named in honor of Joseph of Nazareth.