Foreign direct investment (FDI) flows in Costa Rica experienced a remarkable surge in the first quarter of 2024, reaching a record high of US$1,188.9 million, marking a 42% increase compared to the same period in 2023. The Central Bank of Costa Rica (BCCR) published these figures, highlighting the highest first-quarter FDI ever recorded in the country.
The Central Bank’s data revealed a significant shift in investment patterns. FDI outside the Greater Metropolitan Area (GAM) witnessed a remarkable rise, transitioning from a negative US$ -14.4 million in 2023 to a positive US$49.6 million in 2024, demonstrating an impressive US$64 million increase in investments in these regions. This growth reflects the government’s commitment to promoting regional development and diversifying economic growth.
Manuel Tovar, Costa Rica’s Minister of Foreign Trade (COMEX), expressed his satisfaction with these results. He stated, “These growth figures of 42% in FDI compared to the same period in the previous year and the highest ever recorded during a 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 promotion of investments. We are on the right track with our goal of bringing more employment opportunities to the whole country, generating productive chains and knowledge transfer. We are also committed to honoring the trust of companies and continuing to optimize our value proposition to remain the number one choice when making their growth and expansion decisions.”
Analyzing FDI by regime, the first quarter of 2024 saw 61.5% of investments allocated to free trade zones, followed by 13.5% to companies under 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 observed in regular companies, with investments climbing by US$58.5 million to US$160.6 million in 2024, reflecting a substantial difference of US$102.1 million. Free trade zones also experienced a notable increase of US$91.1 million.
Breaking down FDI by sector, manufacturing accounted for the largest share at 49.4% of the total amount, 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 agroindustry at 0.3%. All sectors exhibited significant growth compared to 2023, with tourism experiencing a remarkable 133% increase, services a 62% surge, and trade a 59% rise.
Laura Lopez, General Manager of The Trade and Investment Promotion Agency of Costa Rica (PROCOMER), emphasized the effectiveness of the new investment attraction model in driving these positive results, particularly outside the Greater Metropolitan Area. She stated, “The results of the first quarter of 2024 in foreign direct investment flows are a clear indicator that our new investment attraction model is bearing fruit, especially outside the Greater Metropolitan Area. The significant increase in investments in these areas underscores the effectiveness of our strategy to promote regional development and diversify our sources of economic growth. We are committed to continue strengthening this momentum to ensure that Costa Rica continues to be an attractive destination for global investors.”
Regarding the origin of the investment, the United States continued to dominate, accounting for 73% of the total FDI received during the first quarter of 2024. Other significant contributors included Colombia (4%), Mexico (4%), Switzerland (3%), and Brazil (3%).
The Central Bank of Costa Rica also reported a downward adjustment in the total investment flows for 2023, revising the figure to US$3,788.2 million from the previously reported US$3,921.4 million.
