PROCOMER: Costa Rica sets new investment record, confirms status as ideal investment destination

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Foreign direct investment (FDI) flows surged 42% in the first quarter of 2024 compared to the same period in 2023, increasing by $349.7 million to a record high of $1,188.9 million. These figures, released by the Central Bank of Costa Rica (BCCR), mark the highest first quarter ever recorded in the country.

According to the central bank, FDI outside the Greater Metropolitan Areas (GAMs) will see a notable increase, moving from negative US$14.4 million in 2023 to US$49.6 million in 2024, reflecting an increase of US$64 million in investment in these regions.

“Recording 42% year-on-year FDI growth, the highest ever for a first quarter, proves that we made the right decision and reflects PROCOMER’s excellent track record as the official investment attraction and promotion agency. We are on the right path towards our goal of increasing employment opportunities across the country, creating production chains and knowledge transfer. We are also committed to continuing to optimize our value proposition to live up to businesses’ trust and remain the first choice when making growth and expansion decisions.” Manuel Tovar, Costa Rica’s Minister of Trade (COMEX), said:

By type of scheme, 61.5% of FDI in the first quarter of 2024 was allocated to free trade zones, 13.5% to enterprises under confirmed schemes, 12.1% to tourism, 6.6% to the financial sector, 6% to the real estate sector, and 0.2% to import processing. Compared to the first quarter of 2023, the largest increase was seen in general enterprises, which saw their investments increase by $58.5 million to $160.6 million in 2024, a difference of $102.1 million. Free trade zones also recorded a significant increase of $91.1 million.

By sector, FDI in manufacturing accounted for 49.4% of the total, followed by the services sector at 16.1%, tourism at 12.1%, trade at 7.3%, the financial sector at 6.6%, real estate at 6%, agriculture at 2.1% and agro-industry at 0.3%. All sectors saw significant growth compared to 2023, with tourism increasing by 133%, services at 62% and trade at 59%.

“The results of foreign direct investment flows for the first quarter of 2024 clearly demonstrate that our new investment attraction model is bearing fruit, especially outside the major metropolitan areas. The significant increase in investment in these regions underscores the effectiveness of our strategy to promote regional development and diversify sources of economic growth. We are committed to continuing to build on this momentum to ensure that Costa Rica remains an attractive destination for global investors.” “We are pleased to welcome Procomer to Costa Rica,” said Laura Lopez, general manager of the Costa Rican Trade and Investment Promotion Agency (PROCOMER).

In terms of investment sources, the United States continues to lead the way, accounting for 73% of total FDI received in the first quarter of 2024, followed by Colombia (4%), Mexico (4%), Switzerland (3%) and Brazil (3%).

Additionally, the Central Bank of Costa Rica reported a downward revision of its total investment flows for 2023, to US$3,788.2 million from the previously reported US$3,921.4 million.