Costa Rica’s Free Trade Zones (FTZs) have become a key engine of economic growth, attracting significant foreign direct investment (FDI) and supporting thousands of jobs.
A recent study by Procomer, Costa Rica’s export promotion agency, shows that FTZ’s accounted for over 40% of the country’s FDI in 2023, underscoring their role as a foundational pillar of the nation’s economy.
Costa Rica hosts 68 FTZs, which collectively attracted $1.5 billion in direct investment in 2023 alone. These zones, often situated in dedicated business parks, house 650 companies. More than 65% of these firms operate in the services sector, reflecting Costa Rica’s rise as a hub for outsourced services, such as software development, customer service, and financial services.
Surprisingly, the manufacturing sector holds a notable 26% share of FTZ businesses, producing medical devices, electronics, and high-tech goods for export.
FTZs contribute nearly 40% to Costa Rica’s GDP, according to Procomer’s findings. The study highlights Costa Rica’s strong infrastructure, favorable business environment, and attractive tax incentives as the main draws for international companies.
In fact, FTZs are estimated to deliver significant returns, with business parks generating $2.80 in revenue for every dollar spent by the government on incentives, making the tax breaks worthwhile.
Most companies in Costa Rica’s FTZs are foreign-owned, including major multinational names like Intel, Amazon, and Procter & Gamble, which have established substantial operations in the country.
Analysts believe that without FTZs, many of these global corporations would not have considered Costa Rica as a viable option for expansion.
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Publish date : 2024-11-14 04:27:00
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