Costa Rica's Manufacturing Exports: Expanding Beyond Medical Devices

Overview of Costa Rica's Export Growth

As of the end of last year, Costa Rica has solidified its manufacturing sector as a driving force in its export market. The manufacturing industry accounted for a remarkable 67% of total exports, generating sales amounting to $13.26 billion out of the total $19.89 billion in exports for the year. The sector has demonstrated a value growth of 10%, largely propelled by precision and medical technology, which continues to play an integral role in the country’s export structure. Additionally, the development of new segments is broadening the production offerings, moving beyond purely medical devices.

Expansion into Diverse Industries

Moving forward, Costa Rica is significantly diversifying its exports in the manufacturing sector, venturing into various fields including electrical and electronic engineering, chemicals, pharmaceuticals, metalworking, plastics, rubber, textiles, leather, and footwear. According to a study conducted by Costa Rica's Trade Promotion Agency (PROCOMER), various products have played a key role in driving the sector's momentum over the year. These products include syringes and catheters, medical prostheses, electrodiagnostic devices, wires and electrical materials, antiserum, tires, textiles, and apparel.

Laura López, the Director General of PROCOMER, stated, "The manufacturing industry continues to establish itself as a strategic pillar of Costa Rica's economy. The country’s dynamism is not only driven by the leading role of the precision and medical technology sector but also by advancements in other industry segments that expand the nation’s export offerings. These segments complement the weight of the medical device industry and reflect a shift towards more technologically advanced processes that enhance the competitiveness of Costa Rica's manufacturing sector in international markets."

Diverse Company Structure and Export Reach

The diversification within the manufacturing landscape is evident in the overall company structure. In 2024, a total of 1,703 companies exported 3,368 different products. The primary export destinations included the United States (55%), the Netherlands (9%), and Belgium (4%). Central America remains the region with the highest number of exporting companies, while North America leads in export value.

Interestingly, while North America dominates with the highest value of exports, Central America is the region with the greatest number of exporting entities. In total, 1,245 companies shipped goods to this market during the studied period, primarily offering products such as electrical cables, textiles, apparel, paints, and more. As far as the number of exporting companies by destination, Central America follows North America, with 702 companies, South America with 344, the Caribbean with 293, and the European Union with 285.

López added, "The distribution of our exports confirms that Costa Rica has a solid base in geographically close markets while simultaneously expanding into strategic target areas. This diversification is critical in reducing market dependency and strengthening the resilience of the export sector."

Contributions from Various Production Regimes

The study affirms that the manufacturing sector is growing under both free trade zones and final assembly regulations, showcasing Costa Rica's ability to maintain highly complex industrial processes across different production systems. An impressive 80% of the manufacturing exports originated from free trade zones, which mainly comprised medical devices, needles and catheters, prosthetics, and diagnostic equipment. In contrast, 14% of exports fell under the final assembly category, featuring leading products such as electrical cables, glass containers, paints, packaging plastics, as well as laminated iron and steel products.

In summary, Costa Rica's manufacturing sector is not only evolving but also finding its footing in a competitive global market. By expanding its export offerings across various industries, the country is paving the way for a robust economic future, one that is increasingly less reliant on any single product category, particularly medical devices.