weighted score 5.3 · ten dimensions
Sourcing Attractiveness Index · ten dimensions
Costa Rica
Labour cost, supply base depth, logistics infrastructure, trade access, and innovation scores for Costa Rica as a sourcing destination.
Labour cost competitiveness
4
Wages higher than most Central American peers but competitive within the medical device and electronics sectors. Free trade zone incentives partially offset labour cost.
Supply base depth
4
Strong in medical devices and light manufacturing. Limited depth in heavy industry, chemicals, or raw materials processing. Supplier ecosystems concentrated in free trade zones.
Logistics & infrastructure
6
Main Pacific port (Caldera) and Caribbean port (Limon/Moin) provide dual-coast access. Road infrastructure adequate but congested around San Jose. No rail freight network.
Workforce skills
7
98% literacy rate — best in Central America. Strong English proficiency. Bilingual technical workforce supports medical device and electronics sectors. University system produces qualified engineers.
Scalability
7
EU-Central America FTA provides preferential tariff access. US-CAFTA-DR in force. Proximity to US market (3-hour flight to Miami). Free trade zones offer streamlined customs and tax frameworks.
Ease of doing business
6
Stable democratic governance and strong rule of law by regional standards. Bureaucratic processes can be slow. Free trade zone framework simplifies operations for export-oriented manufacturers.
Trade access & tariffs
5
EU-Central America FTA and US-CAFTA-DR provide preferential access to two major markets. Limited FTA coverage in Asia-Pacific. Small domestic market constrains local demand-side attractiveness.
Sustainability baseline
6
98% renewable electricity generation. Forest cover has doubled since 1983 through active reforestation policy. Strong environmental governance supports ESG-aligned sourcing narratives.
Innovation & IP
2
Small economy with limited absolute R&D spending and patent output. Intel legacy provides some technology ecosystem depth but overall innovation base is narrow relative to larger competitors.
Quality standards
6
Medical device sector operates to FDA-compliant quality management systems. ISO 13485 certification widespread in free trade zones. Quality standards in other sectors more variable.
Trade Access & Industrial Base
Trade Access & Industrial Base
- EU-Central America FTA
- Costa Rica benefits from the EU-Central America Association Agreement, providing preferential tariff access to the EU single market. This underpins the Scalability score of 7 — exporters can scale volume to EU buyers without facing MFN tariff barriers.
- Medical devices
- Costa Rica is the #1 medical device exporter in Latin America, with over 70 multinational manufacturers operating in free trade zones. Products meet FDA standards and are exported primarily to the US and EU. The sector accounts for over 30% of total goods exports.
- Intel legacy ecosystem
- Intel operated a major semiconductor assembly and test facility in Costa Rica from 1998 to 2014. The closure shifted operations to design and engineering services. The legacy created a skilled workforce, supplier ecosystem, and institutional knowledge in precision manufacturing and electronics.
Workforce & Sustainability
Workforce & Sustainability
- Workforce skills
- 98% adult literacy rate — the highest in Central America. Strong English proficiency relative to regional peers, supported by bilingual education programmes. The Skills score of 7 reflects this workforce quality advantage.
- Renewable electricity
- Costa Rica generates approximately 98% of its electricity from renewable sources — primarily hydroelectric, geothermal, and wind. This provides a strong sustainability baseline for manufacturers seeking low-carbon supply chains.
- Population constraint
- Costa Rica's population of approximately 5 million limits the available labour pool and domestic market size. The Innovation score of 2 reflects the small absolute R&D base and limited patent output compared to larger economies.