A supply chain in Central America is comprised of a set of elements that allow companies that are operating in the region to carry out the development and sale of a product for the purposes of fulfilling the main objective of meeting end customers’ needs.
According to the World Bank, Costa Rica is a success story in terms of its development. It is classified as a high-middle-income country that has experienced sustained economic growth for the past twenty-five years. It’s Gross Domestic Product (GDP) growth in 2018 was a respectable 2.7%, while its per capita GDP stood at US $11,630.67. It is noteworthy to mention that over the last several years, Costa Rica has managed to reduce its total poverty rate from 22.3% to 20.5%. Companies that invest in Costa Rica benefit from its economic stability.
The Central American Group: Hello. Welcome to another installation in the Central American Group’s series of podcasts. We speak with people that have an expertise in Central America that are both internal to our organization and external to the group. Today, we are very fortunate to have Vanessa Gibson with us to speak about doing business in Costa Rica. She is the head of investment climate at the organization that is in charge of economic development for the country at the Costa Rican Investment Promotion Agency (CINDE)
Freight consolidation services in Central America consists of placing goods from several exporters within the same container to form what is known as “consolidated shipments.” Cargo in such shipments must have the same destination or, at least, must have a delivery scheduled along the same route.
One of the region’s main competitive advantages is its geographical position. With the exception of El Salvador, all of the countries in Central America have access to two oceans, as well as have direct access to large markets on both the North American and South American continents. Additionally, Central American countries have made improvements by investing in infrastructure, incorporating new technologies, and attracting more shipping companies to their port facilities. This has resulted in increased volumes of trade.
Listen to the Central American Group’s podcast with Jacques Couwels of Gold Service on starting a business in El Salvador
Over the course of the last twenty years, there has been a significant amount of foreign direct investment (FDI) in Central America. Much of this increase in capital inflows can be viewed as a response to the policies of economic liberalization that were widely enacted by the countries of the isthmus that began to be implemented during the late 1980s.
The Port of Acajutla is on the Pacific Ocean and is El Salvador\’s main commodities and container shipping point. Miguel Flores, CEO of Logistica Internacional talks to the Central American Group.