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You are here: News Journos » Europe News » Costa Rica Emerges as a Strategic Hub for Foreign Direct Investment
Costa Rica Emerges as a Strategic Hub for Foreign Direct Investment

Costa Rica Emerges as a Strategic Hub for Foreign Direct Investment

News EditorBy News EditorMay 25, 2025 Europe News 6 Mins Read

Costa Rica is emerging as a beacon for international investors seeking a stable and sustainable environment for their investments. In 2024, the country recorded a landmark €4.02 billion in foreign direct investment (FDI), marking a significant 14 percent increase from the previous year. With an export growth of 8 percent, Costa Rica continues to showcase its potential as a thriving economic hub, enhanced by its commitment to environmental sustainability and skilled workforce.

Article Subheadings
1) A platform of stability and green ambition
2) Investment flows: where business is booming
3) Expanding opportunity beyond the capital
4) Skilled talent, global reach
5) A gateway to the Americas

A platform of stability and green ambition

Costa Rica has established itself as a leader in political stability and environmental preservation within Latin America. The country generates nearly 100 percent of its electricity from renewable resources and prides itself on having no standing army. These unique factors contribute to Costa Rica’s strong governance, consistently ranking high on World Bank indicators.

The commitment to sustainability is not merely an environmental goal but is embedded in the economic model.

“Costa Rica’s sustainability vision has shown that it is possible to attract foreign direct investment while protecting the natural environment,”

said Adriana Acosta, Director of the ‘essential COSTA RICA’ brand. This relationship between sustainability and investment growth is a salient marketing point for the country, appealing to European investors focused on ESG (Environmental, Social, Governance) objectives.

Investment flows: where business is booming

In 2024, 64 percent of the total FDI was funneled into Costa Rica’s free trade zones, which have experienced a remarkable 24 percent growth year-on-year. This reflects the growing confidence that investors have in the country’s regulatory clarity and operational environment.

The leading sectors attracting FDI in 2024 are diverse:

  • Manufacturing: 67.4%
  • Tourism: 13.9%
  • Real estate: 6.8%
  • Services: 5.1%

Costa Rica’s advanced electronics and medical device sectors are particularly prominent, marking substantial year-on-year growth as the nation cements its status as a regional leader in precision manufacturing. Furthermore, the revival of interest in sustainable tourism has led to a 113 percent increase in investments within that sector, demonstrating strong international demand for eco-friendly travel options.

Expanding opportunity beyond the capital

A notable trend in 2024 was the allocation of over €223 million in FDI outside the Greater Metropolitan Area of San José. This shift aims to diversify investment and counter previous regional imbalances.

Mónica Umaña, Investment Manager at PROCOMER, emphasized,

“We are actively promoting FDI diversification by sector and geography.”

Notable successes include Intel, which has expanded its operations significantly, investing €1.07 million in infrastructure and talent development. Today, Intel employs over 3,400 individuals in Costa Rica, showcasing the country’s growing importance as a hub for global business operations.

Other major investment projects include the Cóbano Preserve & Marina Tambor on the Nicoya Peninsula and the green expansion of the Bridgestone Americas tire manufacturing plant in Belén de Heredia. Through these initiatives, Costa Rica is committed not only to economic diversification but also to fostering inclusive development across previously under-served regions, aligning well with long-term social impact goals.

Skilled talent, global reach

The skill level of Costa Rica’s workforce is another pivotal asset driving investment. With a literacy rate exceeding 98 percent, Costa Rica invests significantly in technical education and bilingual training, equipping its talent pool for complex roles in various sectors, including science and technology.

This well-trained, English-speaking workforce is particularly attractive to European firms in industries such as life sciences, AI, and fintech. Companies looking to expand their operations offshore find in Costa Rica a cost-effective alternative to traditional markets like Asia or Eastern Europe. Collaborations with local universities and research centers create additional avenues for innovation and skill enhancement, further solidifying Costa Rica’s appeal as a business destination.

A gateway to the Americas

Strategically, Costa Rica serves as a gateway to both North and South America, offering critical trade connections to the United States, Canada, and the European Union. The country has established free trade agreements with over 50 nations, cementing its reputation as a reliable and rules-based trading partner in the region.

“Costa Rica is a smart choice for companies seeking impact, predictability and purpose,”

noted Laura López, General Manager of PROCOMER. The nation has created a favorable business environment that allows for innovation and scalability while promoting sustainable practices as an integral part of its operating ethos. This strategic advantage, complemented by its modern infrastructure and efficient customs operations, further sets Costa Rica apart as an attractive investment destination in the Americas.

Key Points

No. Key Points
1 Costa Rica achieved a record €4.02 billion in foreign direct investment in 2024.
2 Sustainability is a key part of Costa Rica’s appeal to international investors.
3 64% of FDI was directed towards free trade zones, reflecting significant investor confidence.
4 The investment landscape is diversifying, with funds being distributed beyond the capital.
5 Costa Rica maintains critical trade links and agreements that enhance its investment attractiveness.

Summary

In summary, Costa Rica stands at the forefront of attracting international investments, driven by its political stability, skilled labor force, and strong commitment to sustainability. The latest FDI figures highlight the country’s trajectory towards becoming a significant economic hub in the region, highlighting that the long-term vision for resilience and social impact is resonating with investors. As Costa Rica continues to evolve and diversify its economy, it remains a compelling choice for those looking to align financial objectives with sustainable growth.

Frequently Asked Questions

Question: What factors contribute to Costa Rica’s appeal for foreign investors?

Costa Rica’s appeal lies in its political stability, commitment to sustainability, highly skilled workforce, and strategic geographical location that facilitates access to key markets.

Question: Which sectors are currently attracting the most foreign direct investment in Costa Rica?

The manufacturing, tourism, real estate, and services sectors are among the top areas attracting foreign direct investment, with manufacturing leading significantly.

Question: How does Costa Rica support sustainable business practices?

Costa Rica’s investment climate is shaped by policies that integrate sustainability into business operations, emphasizing long-term resilience over short-term incentives. This includes significant investment in renewable energy and environmental protections.

Brexit Continental Affairs Costa Cultural Developments Direct Economic Integration Emerges Energy Crisis Environmental Policies EU Policies European Leaders European Markets European Politics European Union Eurozone Economy Foreign Hub Infrastructure Projects International Relations investment Migration Issues Regional Cooperation Regional Security Rica Social Reforms Strategic Technology in Europe Trade Agreements
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