Costa Rica tops the 2022 Inward FDI Performance ranking with a leading global position, punching well above its weight in FDI terms.

January, 2023. Costa Rica received more than 13 times its share of inward greenfield Foreign Direct Investment (FDI) compared with what could be expected, given its level of GDP, according to the Investment Monitor’s 2022 Inward FDI Performance Index.

Such results placed Costa Rica in a leading global position, punching well above its weight in FDI terms, with a score of 13.4 (see Methodology). Just behind the Central American country is North Macedonia, ranking in second place with a score of 11.5.

Most of the total inbound greenfield Foreign Direct Investment of Costa Rica came from the technology, business and professional services, and the life sciences industries (63%).

While the country continues to be a key outsourcing hub, investors are also seeing its potential for manufacturing and R&D operations, particularly regarding life sciences and technology.

Read more about Nearshoring opens window to attract US$1.5 billion in investment to Costa Rica

For instance, MOOG Medical, a US-based medical device company, announced plans to expand its research and development (R&D) department in Coyol Free Zone in Alajuela

MicroVention-Terumo and Confluent Medical, companies related to life sciences and technology, both expanded their operations in Coyol Free Zone during 2022.

The 2022 Inward FDI Performance Index measures a country’s inward investment levels against its gross domestic product (GDP), using Investment Monitor’s FDI Projects Database, which tracks greenfield projects.

Inward FDI Performance Index methodology

The Inward FDI Performance Index examines the number of inbound FDI projects into each country as a proportion of the world total. The result is then divided by the country’s GDP as a proportion of world GDP.

If the resulting value is a number greater than one, that means the country is receiving a higher proportion of inbound greenfield FDI than one may expect, given its economic contributions to the global economy.

A score of less than one means the country is a smaller player in FDI terms compared with its levels of GDP. The FDI Project information is sourced from Investment Monitor’s FDI Projects database and GDP data is sourced from the International Monetary Fund.