medical device manufacturing in Costa Rica

Costa Rica’s export sector continued expanding during the first eight months of 2026, but the latest figures reveal a more challenging environment for the country’s leading industry. Medical device shipments generated $7.286 billion between January and August, representing 46% of goods exports.

Total goods exports reached $15.680 billion, up 4% from the same period last year, according to the Ministry of Foreign Trade (Comex). The results show continued demand for Costa Rican products while highlighting pressures from changing trade policies, exchange rates, and uneven performance across export markets.

U.S. Tariffs Complicate the Export Outlook

A central challenge is the additional 12.5% U.S. tariff on covered Costa Rican goods. According to Costa Rica’s foreign trade single window, VUCE, the measure took effect on July 24, following a Section 301 investigation into countries’ policies governing imports produced through forced labor.

Importantly, inclusion does not mean Washington determined that Costa Rican exports were manufactured using forced labor. The investigation concerned measures countries maintain to prevent such imports. Certain products are excluded, and exporters must check individual tariff classifications to establish their exposure. Some tariff lines covering coffee, bananas, and pineapples fall within those exclusions.

For manufacturers, the commercial implications extend beyond the headline rate. Depending on contractual arrangements, additional duties can affect customer pricing, margins, purchasing decisions, and the relative attractiveness of competing production locations.

However, the January–August figures alone cannot establish how much of the slowdown resulted from tariffs. The measure applied only during the latter part of the reporting period, while demand, product mix, and shipment timing can also influence export values.

Medical Manufacturing Remains the Economic Anchor

Despite weaker growth, medical device shipments remain central to Costa Rica’s manufacturing economy. According to figures presented by Procomer general manager Laura López, the industry includes more than 100 foreign-owned companies and employs over 63,000 people.

The sector’s significance reaches beyond factory employment. Its operations support demand for industrial facilities, transportation, packaging, maintenance, professional services, and specialized suppliers. For communities surrounding manufacturing centers, continued investment can create opportunities across a broader network of businesses.

Costa Rica has also developed capabilities that help manufacturers complete several production stages in-country. CINDE identifies sterilization, packaging, molding, extrusion, assembly, and logistics among the services available in Costa Rica. Such infrastructure can help companies coordinate production and prepare finished products for international distribution.

The next phase of development may depend increasingly on technical sophistication. In its positioning for MD&M West 2026, CINDE highlighted opportunities in applied electronics, connected devices, precision machining, sterilization, and advanced engineering services. These activities could deepen the country’s role in medical manufacturing value chains.

Slower Growth Does Not Mean Investment Has Stopped

The sharp contrast between 25% growth in 2025 and 1% in 2026 deserves attention, but it should be interpreted carefully. Following a strong year, further expansion is measured against a substantially higher base.

Export revenue also measures sales value rather than physical production alone. Changes in product prices, the mix of devices exported, or delivery schedules can affect the total without indicating a similar change in factory activity.

New investment provides another perspective. On September 24, Forj Medical inaugurated a manufacturing facility in Alajuela following a $15 million investment, according to the supplied report.

The project illustrates why medical device shipments and investment announcements should be considered together. Current export growth reflects recent commercial performance, while new facilities may add capacity, jobs, and sales over a longer period.

Agriculture and Electronics Broaden the Growth Base

Other industries helped sustain Costa Rica’s overall export expansion as medical manufacturing lost momentum. Electrical and electronics manufacturing recorded the strongest growth among the sectors highlighted in the report.

The principal results included:

• Electrical and electronics manufacturing: up 18%.
• Livestock and fisheries: up 12%.
• Food manufacturing: up 8%.
• Agriculture: up 6%.
• Plastics: down 5%.

Pineapples and bananas remained the leading agricultural exports, each generating about $900 million in the first eight months of 2026.

These results underline the importance of maintaining a diversified productive economy. Advanced manufacturing brings technical capabilities and substantial export earnings, while agriculture and food processing provide another source of growth.

For policymakers, supporting both requires attention to different needs: technical training and supplier development for manufacturers, alongside transport efficiency, agricultural productivity, and reliable market access for food exporters.

New Markets Offer Opportunities

Geographic diversification also helped offset weaker performance in North America. Exports to Asia increased 25% to $1.110 billion, while Europe grew 10% to $3.447 billion.

Central American markets purchased $2.766 billion in Costa Rican goods, up 9%. North America remained the largest destination, accounting for 48% of exports, despite a 2% decline.

These shifts suggest opportunities to broaden customer relationships, although entering new markets can require additional distribution arrangements, regulatory approvals, and commercial investment.

For medical device shipments, market diversification is therefore a strategic undertaking that depends on each product’s approval status and customer network.

Costa Rica’s immediate task is to preserve competitiveness while strengthening the capabilities that attract manufacturers. Exchange-rate pressures, trade uncertainty, and slower sectoral growth make execution more important. Continued investment in skills, infrastructure, and supplier capacity could help convert the country’s established medical manufacturing presence into more durable export growth over time.