Foreign Investment in Costa Rica on the Decline Last Year

Last year, foreign direct investment declined by 21 percent in Costa Rica, compared to the previous year. With foreign direct investment totaling just over $2 billion in 2014, this marks the first slowdown the country has experienced in foreign investment during the last six years.

Sectors in Costa Rica experiencing the most significant decreases included real estate, which saw a decrease of almost $400 million. Other sectors hit hard, included concessions for public works, tourism, and the commercial sector.

Why FDI Is on the Decline in Costa Rica
According to the general director of the Costa Rican Coalition for Development Initiatives, Jorge Sequeira, immediate action is required in order to increase Costa Rica’s competitiveness. Currently, the country is experiencing a number of challenges that have served to hamper its ability to compete, including the rising cost of electricity, the need for more training in vocational and technical trades, and a need to update labor regulations. The need to provide legal assurances for companies interested in expanding or setting up operations in Costa Rica is also a high priority. Among Costa Rica’s biggest competitors is Panama, which currently boasts the fastest growing economy in the region.

While the slowdown in investment last year was disappointing, the $2.1 billion recorded in foreign direct investment still exceeds the goal of $1.9 billion set by Costa Rica. At the same time, Costa Rica has also witnessed a 22 percent increase in investment in free trade zones. Such increases are largely driven by medical device manufacturers.

There is more good news on the horizon; however, as Costa Rica brought in 39 new foreign direct investment projects late last year. Those projects alone resulted in more than 10,000 new jobs.

In an effort to better understand why some companies may have opted not to invest in the country last year, the Costa Rican Investment Promotion Agency plans to conduct follow-up studies.

John Wieland

John currently believes that this is the best time in history to being a buyer in Costa Rica. He studies global markets and the flow of funds meticulously and is seeing an upswing. He is currently working with Haute Living Magazine to promote a higher quality of luxury homes to discerning clientele throughout the US. He is rigorous in his pursuit to expand such marketing efforts and visits prominent markets like Los Angeles, Miami, New York and more to build upon his network of affluent brokers. As the President of Coldwell Banker Costa Rica’s nine offices, his #1 Priority for his franchisees’ is training. With an ever-changing industry, he carefully reviews the performance of each office and is committed to helping each succeed. He is committed to growing the brand in Costa Rica from nine offices by implementing systems and a useful business tools that brings all the offices together. A visionary and consummate professional, John saw the benefit of starting an alliance amongst other brokerages and in 2008, spearheaded Southern Pacific Alliance of Realtors (SPAR). Although this may be his most challenging work, the sustainability of this business model has already proven to be a tremendous success and benefit for the area brokers. He has built networks spanning multiple countries and is committed to providing the highest level of client service. John, a self-proclaimed wine snob, currently resides in Playa Uvita where he often chooses wine from his hidden stash while his wife prepares something fantastic to pair with it. They continue to travel and visited Spain and Germany and also enjoyed a trip to visit family in California & Arizona. He has purchased a couple properties this year and has plans to build their family home next year in Ballena. An avid golfer, he was able to tick off Torrey Pines in San Diego and PGA Championship in Palm Beach from his bucket list. He is currently reading such books like “The One Thing”, “Business Adventures”, “Tomorrow’s Gold” and “The Clipper Ship Strategy” while also finding time to play the guitar for his wife and daughter.” Keep an eye for his new love of writing on his blog and other various industry platforms.