Despite a difficult global panorama for foreign direct investment (FDI), Costa Rica successfully navigated shifting economic currents and maintained its ability to attract multinational companies in 2024. This is reflected in the report shared by CINDE, partner to advise the investment and development in Costa Rica, informing of its support for 73 new investment projects in 2024, of which 21 were new companies and 52 were reinvestment projects by already installed companies that decided to expand their footprint in this country.
Data from the United Nations Conference on Trade and Development (UNCTAD) confirms a 12% decline in global FDI flows, but Costa Rica has been able to adapt to changes and maintain its strategic positioning while preparing to meet the obvious challenges ahead and take advantage of opportunities that are opening up along the way.
“Although we continue to attract investment, shifting global dynamics require us to stay one step ahead in training our human talent and improving the business climate, forewarnings that CINDE has been speaking out about for some time now. The country needs a forward-looking vision with a long-range perspective if we want to stay competitive and continue generating more jobs for Costa Ricans. At CINDE we celebrate our continued private-sector contribution to the country at a time when, more than ever before, we need to work together,” said Marianela Urgellés, CINDE’s managing director.
In terms of new companies, the sector with the most projects is services, which comprised 67% of the total (14) in 2024. Life sciences accounted for 19% of the newly attracted companies (4) and advanced manufacturing added two new players to the sector, while tourism infrastructure – a reactive sector for CINDE – added one new project.
Likewise, the sector with the most reinvestment continued to be corporate services with a total of 33 projects. Life science came in second with 14 and manufacturing added five.
According to company enrollments in the free trade zone regime (FTZR) published for 2024 in the official journal La Gaceta, 40% of the newly enrolled projects were handled by CINDE and 78% of all reported reinvestment projects were by companies also supported by CINDE.
How is job creation doing?
In terms of employment, the companies helped by CINDE created 5,482 net jobs, with life sciences leading the pack by far with the most growth in job creation (2,599 new openings).
Despite these achievements, FDI growth in Costa Rica has shown signs of flagging in recent years. Jobs are still not growing at 2020-2022 levels, with only about 27% of the net jobs created in that period going on record, an issue that requires close monitoring.
Other factors, such as competition by other countries in nearshoring and friendshoring strategies and changes in the industrial policies of key economies such as the United States and the European Union, pose challenges that the country needs to tackle with a comprehensive strategy that must also address the challenges of country competitiveness.
CINDE Investment Climate Director Vanessa Gibson noted, “Foreign investment attraction is at a turning point. Costa Rica must consolidate its talent ecosystem and strengthen its competitiveness if it wants to continue being an attractive destination for global companies. The demand for technological skills and the need for greater operating cost efficiency are challenges we cannot afford to ignore.”
According to its data, during 2024 CINDE provided support to more than 300 companies operating in Costa Rica on strategic issues for their operation, collaborating on their stability and growth of the Costa Rican productive sector.
FDI Challenges and Opportunities in Costa Rica
As global investment continues to evolve, Costa Rica needs to continue to adapt if it wants to maintain its privileged position in the region. The combination of political stability, top quality human talent, and a robust business ecosystem are still the country’s key cards for attracting high value-added investment.
“We are facing challenges ahead, one of which has to do with available talent, and if we do not address this it could become a serious bottleneck for attracted companies to continue growing or for new companies to come to Costa Rica. A second challenge has to do with the exchange rate and the fact that Costa Rican labor has become very costly, expressed in dollars, when compared with other tremendously attractive and very nearby locations in this region,” said CEFSA partner Rodrigo Cubero.
He added, “The country should continue to focus on making sure available talent is duly trained but also that it has a reasonable cost and that we coordinate at the same pace if we want to stay competitive and continue to create jobs for Costa Ricans.”
