PROCOMER: Costa Rica Sets New Investment Records, Confirming Its Status as an Ideal Investment Destination

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Foreign direct investment (FDI) flows in the first quarter of 2024 surged by 42% compared to the same period in 2023, reaching a record high of US$1,188.9 million, an increase of US$349.7 million. The Central Bank of Costa Rica (BCCR) published these figures, marking the highest level ever recorded in the country for a first quarter.

According to the Central Bank, FDI outside the Greater Metropolitan Area (GAM) saw a remarkable rise, shifting from a negative US$ -14.4 million in 2023 to US$49.6 million in 2024, reflecting a US$64 million increase in investments in these regions.

“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,” said Manuel Tovar, Minister of Foreign Trade of Costa Rica (COMEX).

Breaking down the data by regime, during the first quarter of 2024, 61.5% of FDI was allocated to free trade zones, 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 largest increase was seen in regular companies, with investments rising by US$58.5 million to US$160.6 million in 2024, a difference of US$102.1 million. Free trade zones also experienced a significant increase of US$91.1 million.

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

“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,” said Laura Lopez, General Manager of The Trade and Investment Promotion Agency of Costa Rica (PROCOMER) .

Regarding the origin of the investment, the United States continued to lead, representing 73% of the total FDI received during 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 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.