Historic Overview of Foreign Direct Investments in Costa Rica
Foreign direct investment in Costa Rica has grown considerably during the past 20 years. After the economic crisis that affected the majority of Latin American countries, including Costa Rica, in the early 80s the structural policies that were implemented locally accomplished a swift economic recovery. This fact, along with the establishment of new trade regimes such as the Free Trade Zones, served to attract a new wave of transnational companies, which then and now use the country as an export platform of goods and services to the world.
Foreign Direct Investment in Costa Rica during the last 20 years
These companies, the majority of which were related to basic manufacturing (textile and electronics), created greater dynamics in employment and exports, which at that time provided the economy with the vital foreign exchange reserves it needed to recover from the external imbalances that were created as a result of the debt crisis.
Source: CINDE, based on statistics from the Central Bank.
 Foreign investments in the manufacturing industry have set the standard since the early nineties, followed by other sectors among which food products, financial services and tourism stand out. The change in the structure of foreign investments replicates the progress in the economic development of the country where the secondary and third sectors acquire greater importance as an economy grows; in fact, the services sector has increased its participation within the GDP to an astounding 50%. This is also reflected in the structure of exports, where after being comprised of primary and textile products, they now include an important portion of products with a high technological component. In fact, currently traditional export products such as bananas and coffee have continued their growth in volume and value; however, their relative weight has shifted from 60% of exports to less than 20%. On the other hand, high-tech exports represent one fourth of the total, while tourism is now the main source of foreign exchange.
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