Costa Rica breaks record of foreign direct investment in 2023

San José, March 27, 2024. Costa Rica reached a historic milestone by closing the year 2023 with record figures in foreign direct investment (FDI) flows, registering an inflow of $3.921 billion, achieving 131% of the estimated target for that year, which was $3.000 billion. This amount also represents a 24% increase over December 2022, when FDI amounted to $3.163.9 billion.

The breakdown by regime shows that 61% of this investment corresponds to the free trade zone, followed by 19% in the definitive regime, 7% in the real estate sector, 7% in tourism, and 2% each in the financial sector and active improvement.

“The value proposition of Costa Rica has been key in achieving these strong results in foreign direct investment. Being a globally recognized democracy, having highly qualified human talent, a broad commercial platform, as well as openness to innovation and sustainable development have attracted the trust of investors worldwide. This achievement reflects Costa Rica’s commitment and vision as an attractive destination for investment and economic growth,” said Laura López, General Manager of the Costa Rican Foreign Trade Promoter (PROCOMER).

One of the most notable data points is the increase in investments in the definitive regime, which went from a negative investment of $103.5 million in 2022 to a positive investment of $759.7 million in 2023, representing a significant change in the country’s economic dynamics.

Breaking down the FDI by sector, manufacturing leads with 55%, followed by the services sector with 25%, tourism with 7%, real estate with 7%, agriculture with 2%, and both the financial sector, agribusiness, and commerce with 1% each. Particularly noteworthy is the 187% growth in the services sector, which increased from $336.8 million in 2022 to $965.5 million in 2023.

The United States remains the primary source of FDI in Costa Rica, contributing 71% of the total received, followed by Belgium with 11%, and Switzerland and Panama with 4% each.

Additionally, last year PROCOMER announced a total of 59 new investment projects – the highest number achieved in recent years – representing a 64% increase compared to the 36 projects announced in 2022. By sector, these projects belong 80% to services, 12% to manufacturing, 5% to agribusiness, and 3% to trading companies.

Out of these 59 new projects, 13 were established outside the Greater Metropolitan Area (GAM), doubling the average of 6 that were established in recent years. These companies are located in cantons such as Grecia, Orotina, San Carlos, Pérez Zeledón, and Liberia. Finally, of the 59 new projects, 17 originate from countries other than the United States, such as Finland, Italy, Japan, Peru, Switzerland, and France.