QCOSTARICA — The Free Trade Zone Regime (RZF) reaffirms its role as one of the main economic drivers of Costa Rica, with an absolute contribution of US$12.27 billion in 2023, representing 14% of the Gross Domestic Product (GDP).
This contribution includes a notable growth in local purchases, which reached US$5.6 million, reflecting an annual increase of 24%, and the solid link between the regime’s companies and national suppliers. In addition, the total contribution includes salaries, social security contributions, local sales taxes and other items.
These data come from the study “Free Trade Zone: an engine of competitiveness and economic growth in Costa Rica 2023“, prepared by the Foreign Trade Promotion Agency (PROCOMER).
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The study highlights that, for every dollar that Costa Rica exempts from the RZF, the country receives a return of US$2.8, resulting in a net benefit of US$1.8, evidencing the positive and direct impact on the national economy.
“This study shows and reflects the data of a regime that contributes and impacts many sectors of our economy, not only as a generator of investment and quality employment, but as a catalyst of opportunities for local companies and an active contributor to the well-being of the country. The sustained growth in local purchases, salaries and tax contributions show the drive for international competitiveness and strengthens the economic and social fabric of Costa Rica,” said Manuel Tovar, Minister of Foreign Trade.
In addition to performance, the RZF remains key to the generation of quality employment. In 2023, it meant the creation of 251,530 direct and indirect jobs, with an average annual growth of 9% in the last five years. In addition, it stands out in labor inclusion: 44% of these positions are occupied by women, exceeding by 7 points the national average of female employability (37%) according to data from the INEC Continuous Employment Survey.
“The Free Trade Zone Regime represents one of Costa Rica’s main competitive advantages, fostering the development of specialized human talent, and actively promoting the inclusion of thousands of women in the workforce, reaffirming the country’s commitment to equity and social progress. In addition, these companies contribute to economic well-being, offering salaries that are 1.8 times higher than the national private sector average, which strengthens both the economy and the quality of life, allowing thousands of Costa Rican families to live better,” said Laura López, General Manager of PROCOMER.
In 2023, 59% of companies operating under the regime come from foreign capital, which highlights the crucial role of this in attracting foreign direct investment (FDI) by offering attractive incentives. In addition, last year, 64% of Costa Rican exports of goods were made from companies in free trade zones, underlining their impact on the country’s export growth.
Finally, the study revealed that the RZF has experienced sustained growth in foreign-owned companies, with an average annual rate of 5% between 2019 and 2023. This increase reflects the confidence of international investors in the legal stability of Costa Rica and the solidity of the regime as a magnet for leading companies, driving the modernization and expansion of key sectors for the development of the country.
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Other findings
In the last five years, the RZF has experienced a remarkable growth of 13% in the establishment of companies outside the Greater Metropolitan Area (GAM). By 2023, 86 companies are registered outside the GAM, compared to 52 in 2019. This highlights the capacity of the regime to promote regional development and generate opportunities in various areas of the country.
For its part, since 2010, Costa Rica has undergone a significant transformation in its business structure: the percentage of companies dedicated to the production of goods has a share of 34%, while the service sector will account for 66% in 2023. This change shows the country’s adaptability to global trends, consolidating itself as a hub for highly specialized services, including shared service centers, Business Process Outsourcing, specialized engineering and consulting. And, despite the growth in the service sector, the manufacturing of goods continues to be essential; companies dedicated to the production of medical equipment, food, electrical and electronic products play a fundamental role in the diversification of the economy, and add value to global chains.
As for park managers, they have also registered significant growth, increasing from 27 parks in 2010 to 68 in 2023, representing an average annual growth rate of 7%; which underscores the regime’s commitment to the expansion and modernization of business infrastructure in Costa Rica.
Contributions to security and social and incentives in 2023
The Free Trade Zone Regime makes significant contributions to the security and development of Costa Rica. In 2023 alone, it made the following contributions:
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Costa Rican Social Security Fund (CCSS): US$1.24 billion
Social Development and Family Allowance Fund (FODESAF): US$231 million
National Learning Institute (INA): US$69 million
National Insurance Institute (INS): US$46 million
Mixed Institute of Social Assistance (IMAS): US$23 million
These contributions demonstrate that the RZF acts as a driving force for attracting foreign direct investment and fosters inclusive and sustainable development, generating tangible benefits for the Costa Rican population. “The Free Trade Zone Regime continues to be a strategic pillar for the development of Costa Rica, not only for its economic impact, but for its ability to contribute to the social well-being of the country,” concluded Laura López.
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