Costa Rica

The Switzerland of Latin America

Capital city: San JosePresident : Laura Chinchilla Miranda

Geography: 51,000 km2 (130/172)Tropical climat Natural ressource: Hydro Power28% of national parks and biological reserves

People:4,636,348 inhabitants90% Catolics

Energy: 24% fossil, 61% Hydro, 15% other renewables

Military:No regular military forces0,6% of GDP expenditures (156/172)

Main sectors: High technology, pharmacology, Tourism, agriculture

Generalities

Generalities

7 Economic Factors and Industrial Policies from Costa Rica

1. The Figueres Economic Strategy2. Incorporation to Global Economy in order to compete on

productivity, efficiency, technology and higher value3. Adoption of concept of Clusters4. The Signing of the Central American Allegiance for

Sustainable Development5. The existence of Zona Francas that foster the social

development6. Great Economic Environment7. AND appropriate macroeconomic management.

Impacts: General I• Costa Rica is one of the most

attractive investment environments in Latin America

• FDI rose 52% in 2011 and reaches almost $2 billion ($ 530 millions in 2008).

• President Laura Chinchilla, has set a target for foreign investment to total $9 billion during her four-year term.

• Unemployment rate of 6% (71/200)

• GDP per capita since 1999from 6.6K to 12k in 2011

• Although only 1/20 of Mexico’s GDP, tourism generates 20-25% revenue of those which Mexico’s tourism produces

• Gdp real growth rate: 4,2% (90/216)

Impacts: General II

Impacts: Foreing Investment

Impacts: Exports I

Impacts: Exports II

Impacts: Consistent Growth

Conclusions • Costa Rica = success story. • The country enjoys the highest standard of living in Central

America and one of the highest in Latin America and the Caribbean (LAC). Not surprisingly, poverty levels are among the lowest in LAC.

• The country’s high income and low poverty levels are just a reflection of good growth performance in recent years.

• Over the 1990-2007 period, Costa Rica averaged GDP growth of 5.2 percent, a rate that allowed the country to double its GDP in less than 14 years.

• Costa Rica’s productive structure was effectively transformed from one based on primary products to a (high-tech) manufacturing hub and a mecca for ecotourism.

Sources• World Bank Country Sources. http://

siteresources.worldbank.org/INTCOSTARICA/Resources/CR_Competitiveness_Vol1.pdf

• Building a Cluster: Electronics and Information Technology in Costa Rica. Harvard Business Review. September 26, 2011.

• Promotora del Comercio Exterior de Costa Rica (PROCOMER). http://www.procomer.com/contenido/

• Costa Rican Investment Promotion Agency (CINDE). http://www.cinde.org/es

• Banco Central de Costa Rica. (BCCR). http://www.bccr.fi.cr/