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Costa Rica: a growing foreign investment destination

Costa Rica is heading for record foreign investment: 4.5 billion dollars expected in 2024

Costa Rica is heading for record foreign investment: 4.5 billion dollars expected in 2024

Costa Rica will reach a record figure in terms of foreign direct investment this year, rising from 3.788 billion dollars in 2023 to 4.5 billion dollars by the end of 2024, according to data from the Central Bank. This will position the country as the best in Latin America in this sector and the third in the world.

The country has seen a significant recovery after the pandemic, thanks to an investment by the United States, which is focusing heavily on manufacturing companies in the region due to geopolitical problems. The structure of foreign investment in Costa Rica, in fact, is mainly focused on manufacturing, in particular medical devices and innovation, and therefore makes it a very attractive niche market.
Other strengths of Costa Rica are the quality of the product, the workforce and the favorable business climate. “Costa Rica, Panama and the Dominican Republic are the countries with the greatest opportunities to attract investment.

Many companies, after the pandemic, have learned that there is a logistical risk in concentrating all operations in physically very distant places,” said Alberto Trejos, former Minister of Foreign Trade. According to the magazine FDi Intelligence, the number of investment projects in Costa Rica has grown eight times compared to the growth in production and the flow of foreign direct investment has increased by 20% compared to 2023. Despite the changes in the investment strategy promoted by the government of Rodrigo Chaves, which reorganized resources from the Coalition of Development Initiatives (Cinde) to the Promoter of Foreign Trade, Costa Rica has continued to emerge as a leading investment destination. “The value of Costa Rica's proposal makes it an attractive destination for investors, thanks to factors such as specialized human talent, competitive incentives, legal security, sustainability and successful business agreements,” said Manuel Tovar, Minister of Foreign Trade.

These positive data have led entrepreneurs, academics and economists to argue that investment benefits should be distributed in less developed areas, further strengthening an investment policy consolidated over the last twenty years. A Sector in Full Expansion Costa Rica's continued success as a pole of attraction for investments will depend on future policies and the attention placed on less developed areas, as well as on the ability to maintain a balance between companies that operate in free zones and those that operate under the definitive regime.

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