Costa Rica's medical device sector will grow further

Significance Precision and medical equipment has been the country’s largest export sector since 2017. It maintained that position in 2023, achieving 28% growth year-on-year and contributing 42% of total export value. Costa Rica has become a regional hub for the industry given its strategic location between South America and the rest of North America, and has benefited from US nearshoring. Impacts Free trade zones will attract medical device companies to set up facilities, boosting economic development in surrounding areas. Demand for extra spending on security and education will increase government budgetary pressures. If Costa Rica’s business environment were to worsen, medical device firms could move production, probably to Mexico, Colombia or Brazil.