(Last updated 10 Apr 2012)

Current business situation

CAFTA- DR’s entry into force on 1 January 2009 represents a major step forward in the trade and investment relationship between Costa Rica and the United States, opening opportunities in the wireless telecommunications, Internet and insurance markets that previously has not existed.

Market prospects are excellent in the following sectors: auto parts, audiovisual equipment, hand/power tools, hardware, medical and dental equipment and security equipment. Prospects are also good in the travel and tourism services, hotel and restaurant equipment and construction equipment sectors, although they may be somewhat diminished from recent years high growth.

The Department of Foreign Affairs and Trade (DFAT) provides advice for business travellers and tourists going to Costa Rica. This is regularly updated, and should be checked before planning travel.

Country facts

(Source: Department of Foreign Affairs and Trade - Country economic fact sheet)

Economic climate

The leading sectors in Costa Rica are:

• Automotive parts accessories and service equipment
  Local production is limited to small electrical and metal parts, batteries, electrical copper, cable, hydraulic seats (air/gasoline), steel leaf, springs, aluminium and steel wheels, windshields, carpets, hoses, mufflers, bus bodies, and tires.
• Construction equipment
  The construction sector has been one of the most dynamic sectors of Costa Rica’s economy over the past years. The sector’s growth has resulted primarily from the boom in infrastructure development in the Guanacaste and Puntarenas province along the Pacific Coast and in the Central Valley is surrounding San José. Most of the construction has been concentrated in the private sector, hotels, condominiums, residences, warehouses, industrial plants, offices, shopping malls, supermarkets, schools and hospitals.
• Electronic security equipment
  The Government of Costa Rica and the municipalities generally have not responded as well as they would have liked in providing their citizens with greater security programs, often due to lack of financial resources. Therefore with the twin pressures of the lack of government protection and a sharp increase in crime, Costa Ricans are searching for reliable security/protection alternatives.
• Dental equipment
  There is no significant local production of dental equipment for the Costa Rican market. High quality, reliability, durability, favourable prices, good maintenance service, and timely delivery are the main factors for increase sales in the medical sector.

For the latest key economic indicators and statistics, please see the Department of Foreign Affairs and Trade country economic fact sheet.

Political climate

Costa Rica has long emphasised the development of democracy and respect for human rights. The country's political system has steadily developed, maintaining democratic institutions and an orderly, constitutional scheme for government succession. Several factors have contributed to this trend, including enlightened leadership, comparative prosperity, flexible class lines, educational opportunities that have created a stable middle class, and high social indicators. Also, because Costa Rica has no armed forces, it has avoided military involvement in political affairs, unlike other countries in the region.

Trade relations and statistics

Please see the Department of Foreign Affairs and Trade country economic fact sheet for key trade statistics.