The Free Zone Regime in Costa Rica is a pillar of the economy

Job Creation and Labor Well-being

Firstly, the Free Zone Regime in Costa Rica has been key to job creation, with constant growth in the number of jobs, especially when the unemployment rate remains high. In addition, companies located in Free Zones offer competitive salaries and a variety of benefits for their employees. This contributes to labor well-being and the country’s human capital development.

Another notable aspect is the boost to innovation and technology that the Free Zones have brought. The companies installed in these areas are related to high-tech sectors, such as the service industry, medical equipment, and electronic devices, strengthening the export offer and generating value chains within the country.

In addition, the Free Zones Regime in Costa Rica has encouraged the development of productive supply chains with domestic companies. This, as well, has boosted the economy and generated thousands of indirect jobs. This model has proven to be an engine of sustainable economic growth, positively impacting labor inclusion and the development of the female workforce.

Corporate Social Responsibility and Contributions

Regarding corporate social responsibility, companies participating in the Free Zone Regime in Costa Rica have made important contributions to the country regarding sustainable development and the inclusion of women in the labor market. In addition, they have complied with their tax and social security obligations, thus contributing to financing public services and social well-being.

The year 2023 marked a significant change in the model of attracting Foreign Direct Investment (FDI) in Costa Rica. Although it is premature to evaluate its results, the beginning of the new year allows us to reflect on the work done and establish new objectives. According to the Ministry of Foreign Trade, in December 2023, the attraction of FDI for regions outside the Greater Metropolitan Area (GAM) doubled. During the year’s first three quarters, 56 investment projects were established in the country. Twelve companies have chosen locations outside the GAM, marking a milestone in attracting foreign direct investment. This 16% growth compared to 2022 represented almost $3 billion, with free zones playing a prominent role in generating around 51% of FDI.

Despite these advances, challenges are still ahead for the Free Zone Regime in Costa Rica. Global geopolitical and macroeconomic uncertainty continues to impact the attraction of FDI globally. However, this presents an opportunity for developing economies like Costa Rica. The expectation of a decrease in interest rates in the United States and Europe could lead multinationals to diversify their investments in countries with attractive economic growth rates. In this context, Costa Rica must maintain its position on the map of FDI flows, reinforcing the search for projects and highlighting its value proposition as a country.

Despite the challenges, Costa Rica attracted 12 times more FDI projects in 2023 than expected for the size of its economy, underscoring the need to retain and grow these projects to remain successful in attracting new investments, especially outside the GAM, where economic growth is a necessary priority.

In the context of the Free Zone Regime in Costa Rica, business dynamism is notable. This is evidenced by the constant increase in exports, which currently reach levels close to 20%. This sustained increase in the commercial activities of companies in the free zone regime has been a key driver of the national economy.

Evolution of the Free Zone Regime in Costa Rica

The Free Zone Regime in Costa Rica has evolved significantly in the last decade, transforming from simple recipients of foreign investment to dynamic environments that foster national and international projects. This change has implied adjustments in multiple dimensions, including the diversification of financing sources, the flexibility of operating modalities, and the promotion of attracting investments outside the Greater Metropolitan Area.

The country’s ability to attract and retain specialized talent is also highlighted. This has greatly contributed to the continued success of the Free Zones Regime in Costa Rica. In this context, the constant measurement of competitiveness and the implementation of corporate policies aimed at sustainability and productive efficiency are crucial to maintaining the leadership position of free zones as references in profitability and excellence.

In conclusion, the Free Zone Regime in Costa Rica stands as a beacon of economic resilience and innovation, pivotal in driving domestic and foreign investment. Its multifaceted impact, from job creation and technological advancement to fostering sustainable supply chains and social responsibility, underscores its significance in the country’s economic landscape. While challenges persist, such as global economic uncertainties, Costa Rica’s proactive stance in adapting to changing dynamics and reinforcing its value proposition positions it favorably for continued success in attracting investments. With a steadfast commitment to competitiveness, sustainability, and talent development, the Free Zone Regime is poised to spearhead Costa Rica’s growth trajectory, ensuring prosperity for the nation in the years to come

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