Record-Setting Performance in Q1 2024
The record-setting performance of Costa Rican investment flows in the first quarter of 2024 underscores the country’s growing appeal as a prime destination for foreign direct investment. Costa Rica has demonstrated robust economic resilience, with a remarkable 42% increase compared to the same period in 2023, reaching a historical figure of US$1.9 billion. This growth, particularly notable outside the Greater Metropolitan Area, is a testament to the success of targeted regional development strategies, fostering economic diversification and inclusivity. The substantial investments across various sectors, including manufacturing, services, tourism, and commerce, reflect a well-rounded economic expansion, with notable surges in tourism and services. The dominance of the United States as a primary source of FDI, complemented by investments from Colombia, Mexico, Switzerland, and Brazil, underscores Costa Rica’s global appeal. The proactive measures taken by PROCOMER and the Ministry of Foreign Trade to enhance the country’s value proposition have paid off, ensuring sustained investor confidence and economic vitality. As Costa Rican investment flows continue to attract substantial foreign investments, the country solidifies its position as a leading investment hub in the region, driving forward economic growth, employment opportunities, and the creation of productive value chains across the nation.
Investment Growth Analysis
US$ 1.9 billion, the highest amount recorded, was registered in the first quarter of 2024. Costa Rican investment flows outside the Greater Metropolitan Area reached an increase of US$ 64 million compared to the same period of the previous year. Foreign direct investment (FDI) flows registered during the first quarter of 2024 increased by 42% compared to the same period in 2023, reaching the historical figure of US$1.9 billion, a difference of US$349.7 million. These data, published by the Central Bank of Costa Rica (BCCR), establish the highest level recorded in a first quarter in the country. According to the BCCR, Costa Rican investment inflows outside the Greater Metropolitan Area (GAM) also increased significantly, going from a negative figure of US$ -14.4 million in 2023 to US$ 49.6 million in 2024, reflecting an increase of US$ 64 million in investments carried out in these areas of the country.
Government and Agency Response
“These growth figures of 42% in foreign direct investment compared to the same period of the previous year and the highest recorded during the first quarter confirm that we have made the right decisions and reflect the excellent performance of PROCOMER as an official agency for the attraction and investment promotion. We are on the right track in our objective of bringing more employment opportunities to the entire country, generating productive value chains, and transferring knowledge. It also commits us to honor the trust of companies that invest in Costa Rica and continue optimizing our value proposition to remain the number one option when making your growth and expansion decisions,” said Manuel Tovar, Minister of Foreign Trade of Costa Rica (COMEX).
Unleash Your Growth Potential:
Attract Foreign Direct Investment (FDI)
Learn how our proven strategies bring international capital to your organization. Schedule a free consultation today to discuss your unique needs and discover how we can unlock your growth potential.
Costa Rican Investment Flows Broken Down by Sector
When breaking down the data by the regime, Costa Rican investment flows during the first quarter of 2024 allocated 61.5% to free zones, 13.5% to companies of the definitive regime, 12.1% to tourism, 6.6% to the financial sector, 6% to the real estate sector and 0.2% to inward processing. Compared to the first quarter of 2023, the most significant increase was recorded in regular companies, with an increase from US$58.5 million to US$160.6 million in 2024, a difference of US$102.1 million. Free zones also showed an increase of US$ 91.1 million. By sector, FDI in manufacturing represented 49.4% of the total, the services sector 16.1%, the tourism sector 12.1%, commerce 7.3%, the financial sector 6.6%, real estate 6%, agriculture 2.1%, and agribusiness 0.3%. All sectors experienced significant increases compared to 2023, highlighting 133% in tourism, 62% in services, and 59% in commerce.
Strategic Development and Regional Growth
“The results of the first quarter of 2024 in Costa Rican investment flows indicate that our new investment attraction model is bearing fruit, especially outside the Greater Metropolitan Area, the area outside of Metropolitan San Jose. The significant increase in investments in these areas underlines the effectiveness of our strategy to promote regional development and diversify our sources of economic growth. We are committed to strengthening this momentum to ensure that Costa Rica remains an attractive destination for global investors,” commented Laura López, General Manager of PROCOMER.
Origin of Investments
Regarding the origin of the investment, the United States maintained its position, representing 73% of the total received during the first quarter of 2024, followed by Colombia (4%), Mexico (4%), Switzerland (3%) and Brazil (3%). In addition to the data published by the BCCR, the entity reported a downward adjustment in the total investment flows for 2023, establishing them at US$3.8 billion instead of the previously reported US$3.92 billion. The record-setting performance of Costa Rican investment flows in the first quarter of 2024 underscores the country’s growing appeal as a prime destination for foreign direct investment. With a remarkable 42% increase compared to the same period in 2023, reaching a historical figure of US$1.9 billion, Costa Rica has demonstrated its robust economic resilience and strategic attractiveness. This growth, particularly notable outside the Greater Metropolitan Area, highlights the success of targeted regional development strategies, fostering economic diversification and inclusivity. The substantial investments across various sectors, including manufacturing, services, tourism, and commerce, reflect a well-rounded economic expansion, with notable surges in tourism and services. The dominance of the United States as a primary source of FDI, complemented by investments from Colombia, Mexico, Switzerland, and Brazil, underscores Costa Rica’s global appeal. The dedication of PROCOMER and the Ministry of Foreign Trade to enhancing the country’s value proposition has paid off, ensuring sustained investor confidence and economic vitality. As Costa Rican investment flows continue to attract substantial foreign investments, the country solidifies its position as a leading investment hub in the region, driving forward economic growth, employment opportunities, and the creation of productive value chains across the nation.
Don't Miss Out: Limited Spots Available for Free FDI Strategy Sessions
Foreign Direct Investment can fuel your organization's success. But competition is fierce. Secure your spot today for a free, no-obligation consultation with our FDI experts. Learn how to attract global investment and take your business to the next level.