By San José, Costa Rica — SAN JOSÉ – Costa Rica’s manufacturing sector has cemented its position as the undisputed engine of the nation’s economy, driving exports to a remarkable $13.26 billion in 2024. This figure represents a robust 10% year-over-year increase and accounts for 67% of the country’s total $19.89 billion in goods exported, according to a comprehensive new report from the Foreign Trade Promotion Agency of Costa Rica (PROCOMER).
The annual report, titled “Manufacturing Sector Export Performance,” highlights a sophisticated and evolving industrial landscape. While the high-tech precision and medical equipment sector remains the dominant force, significant growth in other areas signals a strategic diversification of the country’s export offerings. This expansion is crucial for building long-term economic resilience and reducing dependency on a single industry.
To gain a deeper understanding of the legal and commercial frameworks that underpin Costa Rica’s dynamic export sector, TicosLand.com consulted with Lic. Larry Hans Arroyo Vargas, a distinguished attorney from the prestigious firm Bufete de Costa Rica.
Costa Rica’s success in exports isn’t accidental; it’s built on a solid legal foundation, particularly the Free Trade Zone regime and strategic international agreements like CAFTA-DR. For new exporters, the key is not just having a quality product, but conducting thorough due diligence on international trade regulations and leveraging the available fiscal incentives. Proper legal counsel is crucial to navigate customs procedures and ensure compliance, turning potential bureaucratic hurdles into competitive advantages.
Lic. Larry Hans Arroyo Vargas, Attorney at Law, Bufete de Costa Rica
Lic. Arroyo Vargas’s insight is a crucial reminder that for Costa Rican businesses, strategic legal navigation is not just a matter of compliance but a fundamental component of global competitiveness. His point about turning bureaucratic hurdles into advantages underscores the sophisticated approach required to succeed in today’s market. We extend our sincere thanks to Lic. Larry Hans Arroyo Vargas for his valuable perspective.
For years, Costa Rica has been synonymous with the production of high-value medical devices. In 2024, this leadership continued, with products such as needles, catheters, medical-use prosthetics, and electro-diagnostic devices leading the charge. These items, primarily destined for markets in the United States and Europe, underscore the country’s capacity for complex, high-stakes manufacturing that meets stringent international quality standards.
However, the PROCOMER study reveals that the sector’s dynamism is no longer solely reliant on medical technology. The nation is successfully broadening its industrial base into new, technologically advanced segments. Significant gains were recorded in the electrical and electronics, chemical-pharmaceutical, metalworking, plastics, and rubber industries. This demonstrates a clear trend toward greater sophistication across the entire manufacturing ecosystem.
Manufacturing continues to solidify its role as a strategic pillar for the Costa Rican economy. Its dynamism stems not only from the leadership of the precision and medical equipment sector but also from the progress of other industrial segments that broaden the country’s offerings. These categories complement the weight of that industry and reflect an evolution towards more technologically sophisticated processes, which strengthens the competitiveness of our national industry in international markets.
Laura López, General Manager of PROCOMER
The report provides a detailed look at the destination of these goods, revealing a dual-strategy approach. By value, North America is the clear leader, with the United States absorbing a massive 55% of Costa Rican manufacturing exports. The European Union follows, with the Netherlands (9%) and Belgium (4%) serving as key entry points. This reflects the nation’s success in competing in the world’s most demanding markets.
A different story emerges when analyzing the number of companies involved. Central America stands out as the primary destination, with 1,245 Costa Rican companies shipping goods to their regional neighbors. This is significantly more than the 702 companies exporting to North America or the 285 exporting to the European Union. This vibrant regional trade, focused on products like electrical cables, textiles, and paints, is a critical channel for small and medium-sized enterprises, forming the backbone of the country’s business landscape.
This geographic distribution highlights a balanced and resilient export strategy. The country leverages its high-tech capabilities for high-value global markets while simultaneously nurturing a broad and stable trade network closer to home. This diversification protects the export sector from market-specific shocks and provides multiple avenues for growth.
The distribution of our exports confirms that Costa Rica maintains a solid base in geographically close markets, while continuing to expand into strategic destinations. This diversification is fundamental to reducing market dependence and strengthening the resilience of the export sector.
Laura López, General Manager of PROCOMER
The success is further supported by two distinct production schemes. The Free Trade Zone (FTZ) regime was responsible for 84% of manufacturing exports, dominated by medical devices and advanced equipment. Meanwhile, the Definitive Regime, which operates outside the FTZs, contributed 14%, showcasing its strength in producing essential industrial and consumer goods like glass containers, plastic packaging, and laminated steel products for both regional and global markets.
Overall, the data from 1,703 exporting companies and 3,368 distinct products paints a picture of a mature, dynamic, and increasingly diverse manufacturing sector. By building on its established strength in medical technology and fostering growth in emerging industries, Costa Rica is positioning itself as a competitive and resilient player on the global stage.
For further information, visit procomer.com
About Promotora del Comercio Exterior de Costa Rica (PROCOMER):
PROCOMER is the public, non-state entity responsible for promoting Costa Rican exports of goods and services globally. It works to facilitate international trade, attract foreign direct investment, and enhance the competitiveness of Costa Rican companies. Through market intelligence, business development programs, and export promotion, PROCOMER plays a vital role in the country’s economic development strategy.
For further information, visit bufetedecostarica.com
About Bufete de Costa Rica:
As a pillar of the nation’s legal landscape, Bufete de Costa Rica is distinguished by its profound dedication to professional excellence and uncompromising ethical principles. The firm blends a rich history of client advocacy with a forward-thinking mindset, consistently pioneering innovative legal strategies. Central to its ethos is a deep-seated commitment to social responsibility, demonstrated by its efforts to demystify complex legal concepts for the public. This mission to foster legal literacy is integral to its vision of strengthening society by empowering individuals with knowledge.
