Economy Type
Green Advanced Manufacturing Economy
Costa Rica is classified as a Green Advanced Manufacturing Economy country.
This is because the country has shifted its export structure from being a past agricultural exporting nation centered on coffee and bananas to one centered on medical devices, high-tech manufacturing, business services, and eco-friendly tourism. According to PROCOMER, medical devices accounted for approximately 44% of total merchandise exports in 2024, and Costa Rica has grown into a leading production and export hub for medical devices in Latin America.
The World Bank assessed the economic growth rate for 2025 at 4.6% and analyzed that exports of medical devices and services led the growth. The IMF projected that the growth rate would moderate to about 3.6% in 2026 due to the impact of external uncertainties.
Country Definition
Costa Rica is a high-tech manufacturing hub in Central America that has transitioned into an export economy centered on medical devices and knowledge services by combining an eco-friendly national brand, free trade zones, and a skilled workforce.
Why It Matters
Although Costa Rica is not large in terms of land area and population, it is a high-value-added supply chain country where global medical device companies and high-tech manufacturing firms are concentrated.
According to WIPO, more than 90 global medical technology companies are operating in Costa Rica, and their products are expanding from simple consumables to high-difficulty medical devices such as cardiovascular, orthopedic, and diagnostic equipment.
In addition, it is close to the U.S. market and can utilize free trade agreements and free trade zone systems, including CAFTA-DR, making it highly important as a nearshoring production base targeting the U.S. supply chain.
Korea Perspective
For South Korea, Costa Rica holds greater significance as a market for medical devices, biotechnology, electronic components, eco-friendly technology, and supply chain cooperation with the Americas than as a general consumer goods market.
Korean companies can participate in the supply chains of local global companies in the fields of medical device components, precision machining, cleanroom facilities, quality control, packaging materials, smart factories, diagnostic technology, and hospital solutions.
In addition, a strategy to utilize Costa Rica as a production and service hub for entering the US, Central American, and Caribbean markets can also be considered.
Key Keywords
- Green Advanced Manufacturing
- Medical Devices
- Life Sciences
- Free Trade Zone
- Nearshoring
- Knowledge Services
- Renewable Energy
- Eco-Tourism
- US Supply Chain
- Central America Hub
Costa Rica is considered a country in Central America with relatively high levels of political and social stability and education. The capital is San Jose, and economic activity and high-tech industries are concentrated in the metropolitan area, which includes San Jose, Alajuela, Heredia, and Cartago.
Since abolishing the military in 1948, the country has concentrated its national capabilities on education, health, and environmental protection, which has laid the foundation for forming an international national brand as an eco-friendly and peaceful nation. PROCOMER also identifies the abolition of the military in 1948 as a key competitive factor for Costa Rica.
The economy started with agricultural products and tourism, but has shifted to a center of medical devices, corporate services, and digital services based on free trade zones, foreign direct investment, and a skilled workforce.
Key Features
- Central American countries with high political and social stability
- A peaceful country without an army
- Environmental protection and ecotourism national brand
- medical device and service export-oriented economy
- Nearshoring hub close to the US market
- Free trade zones and foreign investment-centered industrialization
Costa Rica's economy is an open economy where medical devices, professional services, tourism, and agri-food exports grow together.
The World Bank projected a growth rate of 4.6% for 2025, explaining that exports of medical devices and services led the growth. During the same period, the unemployment rate fell to approximately 6.3% as of the fourth quarter of 2025.
The IMF projects a growth rate of 3.6% for 2026. Consumer prices in February 2026 fell by approximately 2.7% year-on-year, marking deflation, with low food and fuel prices and the strengthening of the colon identified as the main causes.
While global companies within free trade zones are at the center of economic growth, the productivity gap between domestic SMEs and foreign-invested companies, as well as regional imbalances, remain challenges.
Market characteristics
- Export-centered growth of medical devices and services
- High proportion of foreign direct investment
- middle-class consumer market
- High level of education and skilled workforce
- Industrial concentration in the capital area
- Relatively high labor and operating costs
- Market sensitive to environmental and social standards
MarketHub Point
Costa Rica is a high-value-added manufacturing and service market that leverages quality, certification, workforce, and access to the U.S. market rather than serving as a low-cost production base.
Costa Rica's major industries are medical devices and life sciences. A wide range of products are manufactured, including medical needles, catheters, orthopedic products, cardiovascular devices, and diagnostic equipment, and the country possesses the capability to produce medical devices ranging from Class I to Class III.
Investment in medical device manufacturing continued in 2025, and PROCOMER assessed the medical device sector as a key export driver for Costa Rica. Investments in new production facilities by global medical device CDMO companies were also announced for 2026.
In the service industry, business processes, software, financial support, engineering, and customer support services are growing. In agriculture, coffee, bananas, pineapples, and tropical produce are major exports, while tourism has developed centered on ecotourism and medical tourism.
Key industries
- Medical devices
- life sciences
- Advanced manufacturing
- Business and Digital Services
- sightseeing
- Agri-food
- Electronic and precision components
- eco-friendly technology
Key resources
- skilled workforce
- Biodiversity
- hydroelectric, wind, and geothermal
- coffee
- banana
- pineapple
- Fisheries and tropical agricultural products
- Tourism and ecological resources
MarketHub Point
Costa Rica's key resources are not minerals or low-wage labor, but skilled labor, biodiversity, eco-friendly power, and a global manufacturing ecosystem.
Costa Rica's export structure consists of medical devices, agri-food, and services. Medical devices are the largest commodity export item and are exported to global distribution and production hubs such as the United States, the Netherlands, and Belgium.
According to WTO data, the United States is Costa Rica's largest market, accounting for approximately 46% of its merchandise exports, while the European Union accounts for about 18.5%. Neighboring Central American countries such as Guatemala, Nicaragua, Panama, and Honduras are also major export markets.
Major imports include machinery and electrical/electronic components, medical device intermediates, petroleum products, automobiles, chemical products, and consumer goods. The medical device industry has a global value chain structure in which raw materials and precision parts are imported, processed and assembled in free trade zones, and then re-exported to the United States and Europe.
major trading partners
- USA
- European Union
- Guatemala
- Nicaragua
- Panama
- Honduras
- china
- japan
Supply chain characteristics
- Exports focused on the US market
- Inclusion in the global medical device value chain
- Free trade zone-centered production
- Dependence on imports of intermediate goods and precision parts
- Utilizing ports on both the Pacific and Caribbean Seas
- FTA networks such as CAFTA-DR
- Quality, Certification, and Delivery-Centric Supply Chain
MarketHub Point
Costa Rica's supply chain competitiveness lies in its precision manufacturing and quality control capabilities connecting the U.S. and European medical device markets, rather than in low-cost mass production.
Costa Rica is one of the most foreign investment-friendly countries in Latin America, and its free trade zone system serves as a key investment base for medical device, electronics, and service companies.
Global companies evaluate tax incentives, accessibility to the U.S., education levels, political stability, and the medical device industry ecosystem as key investment factors. Recently, investments have expanded beyond simple assembly to include research and development, product design, precision machining, cleanroom production, and supply chain management.
Korean companies can approach the market not only through the sale of finished products but also through a B2B method of supplying parts, materials, equipment, and quality control solutions to the local factories of global medical device companies.
Market characteristics
- Investment environment centered on free trade zones
- Concentration of global medical device companies
- US standards and quality standards applied
- English and Spanish business environment
- Emphasis on eco-friendly and ESG standards
- Intensifying competition to secure skilled labor
Key Opportunities
- Medical device parts and materials
- Precision machining and molds
- Cleanrooms and Factory Automation
- Inspection and Quality Management System
- Medical packaging materials
- Diagnostic devices · Digital health
- Eco-friendly energy storage devices
- Agri-food processing and cold chain
- IT & Business Services
Major Risks
- Rise in labor costs and electricity and operating expenses
- Possibility of skilled labor shortage
- dependence on U.S. economic and trade policies
- The gap between free trade zones and the domestic economy
- Traffic congestion and logistics infrastructure constraints
- Complex administrative and licensing procedures
- Higher production costs than neighboring Central American countries
Costa Rica has a high potential to grow into a high-value-added industrial nation in Central America based on the export of medical devices and services.
The medical device industry is expanding from simple consumables to complex products such as cardiovascular, neurovascular, orthopedic, and diagnostic systems, and new investments by global companies are continuing. WIPO assesses that Costa Rica has developed into a major production hub for medical technology and pharmaceutical innovation.
However, dependence on the U.S. market and changes in global trade policy are major risks. The IMF analyzed that U.S. tariff policies, high international oil prices, and changes in the financial environment could burden growth and foreign investment by 2026.
Changes to Watch Out For in the Future
- Medical device advancement
- Expansion of R&D and design functions
- US-centric nearshoring
- Semiconductor and Electronic Components Investment
- Growth of digital and knowledge services
- Eco-friendly power and industrial linkage
- Training of skilled personnel
- Improvement of port and road infrastructure
- Expanding linkages between FDI and domestic companies
Market Position
MedTech Manufacturing Hub + Green Nearshoring Economy
An advanced manufacturing hub connected to the U.S. supply chain, based on medical devices, eco-friendly power, and skilled labor.
Key Opportunities
- Medical device parts and materials
- Precision machining and molds
- Cleanroom and Automation Facilities
- Quality Inspection and Certification
- Digital Health and Diagnostic Devices
- eco-friendly energy
- Agri-food processing and cold chain
- US market-linked production
- Business and IT Services
Recommended Strategy
Identify
Identify global companies and local supply chain demands in the medical device, life science, and high-tech manufacturing sectors.
↓
Qualify
Secure international quality standards such as FDA and ISO 13485, as well as precision manufacturing and traceability capabilities.
↓
Integrate
Incorporate as a parts, equipment, and technology partner into local free trade zones and global corporate supply chains.
Final Assessment
Costa Rica is a high-value-added supply chain country in Central America that requires a focus on medical devices, advanced manufacturing, eco-friendly technology, and access to the U.S. market, rather than price competition.
Scope of investigation
This material was compiled by cross-reviewing publicly available data from international organizations, governments, trade and investment agencies, and industry sources, as well as major foreign media.
international organizations
- World Bank
- International Monetary Fund (IMF)
- World Trade Organization (WTO)
- OECD
- World Intellectual Property Organization
- United Nations
- UNCTAD
- Inter-American Development Bank
Government and public institutions
- Government of Costa Rica
- Banco Central de Costa Rica
- PROCOMER
- COMEX Costa Rica
- CINDE public data
- KOTRA
- Korea Export-Import Bank Overseas Economic Research Institute
- Korea Institute for International Economic Policy
Major foreign media
- Reuters
- Bloomberg
- Financial Times
- The Economist
- AP
- BBC
- LatinFinance
- Americas Quarterly
Research and industrial data
- World Bank Costa Rica Economic Update
- IMF 2026 Article IV Consultation
- WTO Trade and Tariff Profiles
- PROCOMER Export & Investment Data
- WIPO Medical Device Industry Data
- OECD Economic and Environmental Report
- Google Scholar public paper
- Public Medical Device and Advanced Manufacturing Industry Data
Writing Verification
This document was prepared in accordance with the following principles.
- Written based on facts and open sources
- Cross-review of data from international organizations, governments, trade, and industry
- Reflecting the latest data available as of July 2026
- The share of medical device exports is reflected by distinguishing the data base year.
- Reflecting the perspective of utilization by South Korean companies and public institutions
- Apply MarketHub WCI v1.0 Golden Template
- Applying the same table of contents and standards to 195 countries
Costa Rica is a representative example of industrial transformation in Central America, having transitioned from an agricultural exporting country centered on coffee and bananas to a high-value-added exporting country focused on medical devices, life sciences, and knowledge services.
South Korea should understand Costa Rica not merely as a consumer market, but as an advanced manufacturing hub connected to the medical device supply chains of the United States and Europe. Medical device components, precision machining, cleanrooms, automation, inspection and certification, and digital health are key areas where Korean companies can collaborate.
Furthermore, eco-friendly power, biodiversity, and a stable institutional environment are suitable for green manufacturing and ESG-based industrial cooperation. However, considering high labor costs, competition for skilled workers, dependence on the U.S. market, and logistics infrastructure constraints, a strategy of technology, quality, and supply chain integration should be chosen over low-cost production.
Final evaluation
Costa Rica is a key strategic high-tech manufacturing country in Central America that South Korean medical device, precision manufacturing, and eco-friendly technology companies can leverage to enter the U.S.-centric global supply chain.