Costa Rica tops Latin America in per capita modern services exports

Costa Rica stands alone in Latin America as one of the most dynamic and responsive nations in the export of modern services. In a new report released by the United Nations Economic Commission for Latin America and the Caribbean (ECLAC), it is revealed that in 2023, Costa Rica recorded the highest per capita exports of modern services in Latin America at $1,400 per inhabitant. By comparison, Brazil, Mexico, Colombia, and Chile, all of which have larger overall economies or populations, come in well below this number. What makes Costa Rica so unique is the sophistication, scalability, and global reach of its modern service exports.

The value of these services can range from a few hundred dollars to hundreds of millions of dollars. But what exactly are modern services exports? ECLAC defines modern services as those that are both highly digitalized or knowledge-based and able to be delivered over long distances through the internet. This encompasses a variety of economic activities, including:

• Software development.
• Systems integration.
• Technical support.
• Accounting and financial analysis.
• Customer service.
• Contact centers.
• Legal services.
• Research and development (R&D).
• Data analytics.
• Management consulting.

As opposed to traditional exports of physical goods or in-person services, the critical advantage of these exports is that they are highly location-independent. They tend to flourish in countries that can offer highly educated labor forces with the necessary connectivity and soft infrastructure, like political stability and a predictable regulatory environment.

So, if Costa Rica tops Latin America, why is that the case? The answer, in short, is the country’s two-decade commitment to creating a knowledge economy.

From the very first day of his administration in 2006, President Luis Guillermo Solís made Costa Rica a knowledge-based services hub a strategic goal. As a result, much of the most recent progress in the Costa Rican economy is attributable to this focus on developing sectors that are the fastest-growing in international trade today.

The foundations of Costa Rica’s competitive advantage

Over the past two decades, Costa Rica has developed an ecosystem that is ideal for digital trade and business process outsourcing. The primary reason Costa Rica tops Latin America is the result of a sustained effort in both human capital formation and technology investment.

Education

To meet the growing demand for both technical professionals and professional consultants, Costa Rica invested heavily in both technical and professional training. By making higher education not only accessible but mandatory for all middle-class Costa Ricans, a wave of young professionals was created who were both multilingual and able to work in international or global settings. INA or National Institute of Learning programs, along with university-led training programs and even in-house multinational company training programs, have created a virtuous circle of talent production.

Digital transformation and telecom reform

The abolition of tariffs on software and hardware imports, as well as the gradual liberalization of the telecommunications market, has meant that companies based in Costa Rica can access the latest technology at market prices or less. This removes a key cost pressure on companies, allowing them to focus resources on talent acquisition, innovation, and marketing.

At the same time, the government has invested in ensuring that internet access and coverage are available to everyone in the country. High-speed broadband has reached almost every corner of Costa Rica with the impetus of a new National Telecommunications Development Plan (PNDT). The PNDT was implemented by the government to cover the entire country with high-speed internet connectivity by 2021.

In this sense, the combination of reliable internet service with low costs for computers and telecommunications services has made Costa Rica a more attractive place to work and create companies.

The government: political and economic stability

A fundamental element that has given Costa Rica a comparative advantage over other Central American countries has been political stability and an increasing institutionalization of the rule of law over time. In addition to free trade agreements, these have provided investors and multinational companies with the assurance that they can enter into contracts, build facilities, and grow in a stable environment.

Top export sectors by value

According to ECLAC, Costa Rica recorded $16.8 billion in modern services exports in 2024. With a population of 5.1 million people, this is the equivalent of $1,400 per inhabitant. To put this into context, Costa Rica’s nearest rival is Chile with $1,083 per person and a total of $9.8 billion in exports.

Costa Rica recorded the fastest growth rate in modern service exports of any country in Latin America between 2011 and 2024, expanding by 14.2% per year.

When it comes to specific service export categories, telecommunications and IT services exported $2.3 billion in 2024, while business consulting, management, and R&D services exports recorded a total of over $6 billion in 2024. But these are not the only service sectors that benefit from modern technology and connectivity. A new global economic report by Ricardo Monge, an ECLAC consultant, outlines the sectors in Costa Rica that are both the most dynamic and the most innovative.

A diversified base of multinational and local companies

In addition to per capita exports, Costa Rica also has the highest rate of participation in modern service exports. The ECLAC report noted that there were 16,000 modern services-exporting companies in Costa Rica. As the figure above shows, many of these are affiliates or subsidiaries of large global companies, but an increasing number are domestic small and medium-sized enterprises.

The interesting phenomenon in Costa Rica is that many of these companies are created by former employees of the multinational corporations with whom they partner. In other words, Costa Rican professionals are not just meeting the demands of the global market through existing companies but creating new companies to respond to them as well.

Costa Rica’s modern services ecosystem has thrived because of the interplay between both kinds of companies. The multinationals bring access to global technology, capital, know-how, and distribution. The SMEs, in turn, provide highly trained Costa Rican talent that can meet global standards and adapt services to specific needs. The end result has been the formation of a large, flexible, and entrepreneurial business services sector in Costa Rica that has positive spillover effects across other industries.

High-value jobs for Costa Rican professionals

The rapid development of Costa Rica’s modern services economy has meant that high-value and high-quality jobs are now being created for Costa Rican professionals. This includes well-paying jobs in niche skills and knowledge areas such as data science, digital marketing, business process outsourcing for legal and financial services, cybersecurity, and project management.

In many of these positions, the option for remote work means that work-life balance can be even better in Costa Rica than it would in the global market of which the country is now a part. What is more, the growth of these industries has been geographically spread beyond Greater Metropolitan Area (GAM) of San José as regional cities become more economically active.

Finally, Costa Rica is also using its growing base of modern services exporters to attract foreign direct investment. In special free trade zones and designated investment centers, Costa Rica is making inroads into meeting the demands of both global companies and Costa Rican startups that want to scale internationally.

Conclusion

Costa Rica tops Latin America not just because of its high-quality infrastructure but also because of its dynamic ecosystem of companies. Between the 16,000 modern service exporters based in Costa Rica and the thousands of companies around the world that have come to Costa Rica to set up operations, Costa Rica is at the forefront of a global phenomenon that has reshaped international trade.