Costa Rica recognized by the United States as an ideal destination for Foreign Direct Investment

Transparent and consistent accounting procedures in line with international standards.

August, 2023. In a report published by the U.S. Department of State, Costa Rica’s success as an attractive investment climate for multinational companies is acknowledged.

According to a statement issued by COMEX, “the country has achieved remarkable success in establishing and promoting an ecosystem of export-oriented technological companies, along with suppliers of goods and services, supported by public institutions, associated universities, and experienced human talent.”

The U.S. representatives also highlights other successes of Costa Rican policies, including:

• Strong communication channels between public institutions and investors.
• The government’s agenda of new trade agreements positively impacting business opportunities.

• Positive impact on legal security through good practices adopted from the Organization for Economic Cooperation and Development (OECD) in the creation of laws and regulations.

• Promotion of responsible business conduct (RBC), leading to a positive reputation for companies as drivers of economic growth, both within and outside the country.
• Transparent and consistent accounting procedures in line with international standards.
• A robust legal framework for the protection of intellectual property.

Costa Rica is the oldest continuous democracy in Latin America and the newest member of the Organization for Economic Cooperation and Development (OECD), with an established government institutional framework, and a diversified upper-middle-income economy. The country’s well-educated labor force, relatively low levels of corruption, geographic location, living conditions, dynamic investment promotion board, and attractive free trade zone incentives all appeal to investors. Foreign direct investment inflow in 2022 as estimated by the Costa Rican Central Bank was USD 3.045 billion, or 4.45 percent of GDP, with the United States accounting for USD 2.23 billion (73 percent of total FDI). Costa Rica recorded 4.3 percent GDP growth in 2022 as it recovered from the effects of the Covid-19 pandemic,” mention the summary of the report

The announcement comes just days after the same entity announced a partnership with Costa Rica to explore opportunities to diversify and grow the global semiconductor ecosystem and create a more transparent, secure, and sustainable global semiconductor value chain, recognizing the value of Costa Rica as a response to the global shortage of microprocessors.

Furthermore, this positioning represents a great opportunity following the United Nations Conference on Trade and Development (UNCTAD) World Investment Report, which details the landscape of Foreign Direct Investment (FDI) globally, and the main challenges and opportunities that different countries face in promoting this model, focusing on 5 key aspects:

• Investment in projects related to the Sustainable Development Goals (SDGs)
• Investment in clean and accessible energy for all
• Investment in infrastructure
• Increase in Global Value Chains (GVCs)
• Facilitating measures for attracting FDI

For more information on the U.S. Department of State’s 2023 Investment Climate Statement for Costa Rica, you can visit this link .