#San Jose #Costa Rica #PROCOMER #Export Model

The Evolution of Costa Rica's Export Model

Over the span of 40 years, Costa Rica has undergone a remarkable transformation in its export landscape. Initially, during the early 1980s, the country primarily dealt in just four traditional products. Fast forward to 2024, and this Central American nation has diversified its portfolio to include more than 4,000 goods and services available in around 150 international markets. This significant development is documented in a detailed study conducted by the Costa Rican Foreign Trade Promotion Office, known as PROCOMER, highlighting one of the most profound economic changes in the country's history.

Key Highlights of the Evolution

The findings from the study indicate that in the last decade, Costa Rica's exports have grown at an impressive average annual rate of 8%, a growth that correlates with a substantial structural shift in the country's export composition. In fact, advanced manufacturing now accounts for 84% of the entire industrial goods sector. Additionally, knowledge-intensive services contribute a notable 58% to total exports in this segment. Such an evolution underscores a strategic shift towards more sophisticated activities requiring specialized talent and adherence to international standards.

Economic Impact

The impact of this transformation is not limited to export numbers; it has had a vast influence on the job market as well. By 2024, exports were responsible for creating over 709,000 jobs, with women making up 43% of this workforce. Interestingly, almost 19% of this export activity is concentrated outside of the Greater Metropolitan Area, indicating a broader geographical distribution of economic growth that benefits various regions across the country.

Laura López, General Manager of PROCOMER, emphasized the importance of sustained decisions and collaborative vision between the public and private sectors. She stated, "The shift from having merely four main export products in the 1980s to a staggering 4,000 today exemplifies an economy that has learned to transform, innovate, and compete in increasingly demanding markets. This study demonstrates how diversification broadens opportunities, generates jobs, and reinforces economic development in all regions."

Historical Context

Historically, the study delineates how Costa Rica has systematically reduced its reliance on traditional exports. Back in the late 1980s, over 90% of the country’s exports consisted of traditional goods. Today, however, the scenario has flipped significantly, with non-traditional exports, particularly in advanced manufacturing, differentiated agro-industries, and specialized services, leading the growth. This strategic change has allowed Costa Rica to broaden its export offerings and better respond to external demands with increased efficiency.

Market Expansion

As Costa Rica diversified its product categories, it also expanded its market reach significantly. The study reveals that the nation maintains a strong presence across North America, Europe, Asia, and Latin America, witnessing positive growth trends in regions requiring higher-value goods and services. Although the United States remains the primary destination for exports, the notable growth observed as of September 2025 — with Europe increasing by 18% and Asia by a remarkable 39% — highlights the effectiveness of strategies aimed at exploration of new markets and reducing dependence on singular export hubs.

Opportunities Ahead

Importantly, the analysis points out several emerging opportunities linked to nearshoring, digitalization, cleaner energy transitions, and the expansion of knowledge-based services — all areas where Costa Rica already possesses established capabilities. Consequently, the study concludes that the country is entering a new phase in its export development journey, equipped with a broader and more sophisticated productive base that is well-positioned to meet growing international trade demands in the future.

In summary, Costa Rica's journey from exporting four products to more than 4,000 exemplifies a significant economic evolution, which not only enhances its export capabilities but also enriches the lives of its citizens across the nation. This success story serves as an inspiring model for other nations aiming for economic diversification and resilience in the global market.