In an unprecedented shift within Latin America’s economic landscape, Costa Rica has transformed itself from a traditional exporter of agricultural goods into a hub for high-tech manufacturing and specialized services. This evolution has driven its exports from $63 million in 1950 to an impressive $28 billion in goods and services by 2023. Adding to its economic success, the country recorded a remarkable 21% growth in Foreign Direct Investment (FDI) in 2023, marking a milestone in its development trajectory.
From Bananas to Microchips: A Strategic Transformation
With a population of 5.2 million, Costa Rica was historically recognized for its coffee and banana exports. Today, it stands as a compelling alternative to Asian manufacturing, particularly in the semiconductor and medical device industries. This transformation stems from a robust national value proposition that has prioritized investment-friendly conditions, supported by PROCOMER, Costa Rica’s Export and Investment Promotion Agency. Over the years, these efforts have drawn more than 450 multinational companies to establish operations within its borders.
Riding the Wave of Global Supply Chain Restructuring
Costa Rica’s rise as a technological manufacturing hub aligns with critical shifts in global supply chains. Amid efforts by the United States to reduce reliance on Asian manufacturers—especially in the semiconductor sector—Costa Rica has emerged as a prime nearshoring destination.
“Costa Rica has taken decisive steps over the years that are yielding results,” said Laura Lopez, General Manager of PROCOMER. “The country’s commitment to sustainability, established decades ago, has become a crucial differentiator in attracting foreign investment.”
A significant milestone in this trajectory came with Intel’s announcement of a $1.2 billion reinvestment in Costa Rica for 2024 and 2025. Employing over 3,300 workers, Intel’s expanded operations underscore growing confidence in Costa Rica’s capacity to handle complex manufacturing processes and play a pivotal role in global chip production.
Beyond Semiconductors: A Diversified Growth Story
While semiconductors capture headlines, Costa Rica’s FDI growth spans multiple industries. Medical device manufacturing has become the country’s leading export sector, eclipsing traditional agricultural products. For example, Johnson & Johnson MedTech announced its largest manufacturing facility outside the United States, set to create 3,000 jobs in Costa Rica.
“Costa Rican talent has demonstrated not only technical ability but also key skills such as customer and business focus, teamwork, and a creative problem-solving mindset,” said Jairo Quirós, Senior Vice President of Global Business Services and Engineering Centers at Equifax, a leading technology and security firm.
Several factors have fueled Costa Rica’s success in attracting FDI, including:
- A highly qualified and specialized workforce
- Political stability, rare in the region
- Strategic proximity to the U.S. market, with access to both the Atlantic and Pacific Oceans
- A sustainability-focused energy grid, powered by 98% renewable energy on average over the last five years
- Incentives through a free trade zone regime that ensures legal certainty for investors
- Preferential access to 2.8 billion consumers via trade agreements with major global markets
Challenges and Regional Competition
Despite its achievements, Costa Rica faces notable challenges. The country must contend with increasing competition from other Latin American nations aiming to capitalize on nearshoring opportunities. Additionally, its relatively small population may limit growth in labor-intensive industries.
To address these challenges, PROCOMER is spearheading initiatives to reskill and upskill workers and refine domestic regulations to attract talent that meets companies’ evolving needs.
“The key challenge will be to maintain momentum while ensuring sustainable growth,” said Monica Umaña, PROCOMER’s Foreign Investment Manager. “We are focusing on attracting investment in established sectors while intensifying efforts in emerging areas such as agribusiness, light manufacturing, education, health services, and the film industry.”
Looking Ahead: Costa Rica Trade & Investment Summit 2025
Costa Rica’s ambition to solidify its position as a regional business hub is evident in the recent announcement of the Costa Rica Trade & Investment Summit 2025. Scheduled for September 2025, the event aims to bring together 400 investors and buyers from 45 countries with 1,000 local exporters and multinational companies, merging export promotion with FDI attraction.
Moreover, Costa Rica’s designation as a key ally under the U.S. CHIPS and Science Act, with access to $53 billion in financing, underscores its growing importance in global supply chains. As companies reassess supply chain strategies in the post-pandemic era, Costa Rica’s combination of political stability, a skilled workforce, and a long-standing commitment to sustainability continues to yield significant results.
If Costa Rica can maintain its current trajectory of innovation and growth, it is well-positioned to become, as some suggest, Latin America’s answer to Silicon Valley.
