Costa Rica has reached a new milestone in foreign direct investment (FDI), recording more than $4.3 billion in inflows in 2024—a 14% increase from the previous year and the highest in the country’s history. However, this achievement has reignited debate over the nation’s growing dependence on the United States as its primary source of foreign capital.
Recent data shows that approximately 58% to 71% of Costa Rica’s incoming investment projects originate from the United States, making it one of the most U.S.-dependent economies in Latin America. This high concentration of FDI from a single country has prompted warnings from economists and trade experts about the risks of overreliance, especially in an increasingly volatile global environment.
The surge in U.S. investment is partly attributed to global trends such as nearshoring and friendshoring. These strategies, which aim to relocate production closer to home or to politically aligned countries, gained momentum following pandemic-era supply chain disruptions and ongoing geopolitical tensions. Costa Rica’s political stability, skilled workforce, and commitment to sustainability have made it a favored destination for U.S. multinationals seeking reliable bases in the Americas.
Despite these advantages, the global outlook for FDI has grown more uncertain. Trade conflicts, tariff escalations, and shifting U.S. industrial policies are causing multinational companies to reassess their international footprints. There are signs that outbound U.S. investment may stagnate in 2024, as companies weigh the risks of new tariffs and the potential for further trade restrictions. This environment of uncertainty could prompt some firms to repatriate operations or diversify their investments away from countries with high exposure to U.S. policy shifts.
Costa Rica’s economic model, driven by export-led growth and FDI in high-value sectors such as technology and advanced manufacturing, has delivered strong results. Our country’s exports grew by 8% in 2024, and new FDI projects have generated thousands of jobs, especially outside the Greater Metropolitan Area. However, experts caution that a narrow FDI source base can make the economy vulnerable to external shocks. A sudden change in U.S. investment patterns or trade policy could have outsized effects on Costa Rica’s growth and employment.
To mitigate these risks, Costa Rican authorities are working to diversify investment sources and attract projects from Europe, Asia, and other regions. In 2024, 22 out of 61 new FDI projects came from countries other than the United States, reflecting early progress in broadening the investment base.
As global economic headwinds persist, Costa Rica faces the challenge of sustaining its growth while reducing its exposure to the risks of overdependence on a single partner. Policymakers are focusing on innovation, infrastructure, and education to maintain our country’s competitiveness and appeal to a wider range of investors. The experience of the pandemic and ongoing trade disputes have underscored the importance of economic resilience, making diversification a key priority for the years ahead.
