AGP Executive Report

Auto Market: Costa Rica’s car imports fell to 5,019 in September, nearly half August’s total, after authorities closed a tax loophole that let importers undervalue vehicles at customs. Infrastructure: The government has opened bidding for the $770 million San José–San Ramón highway expansion, with construction expected to start in the second half of 2027. Trade: U.S. dairy imports into Costa Rica surged 69% after tariffs were removed, raising pressure on local producers. Corporate Expansion: Inchcape plans to acquire Volvo operations in Costa Rica as part of a wider expansion across Latin America. Business Rules: Companies using SINPE Móvil have 12 months to register their payment numbers or face fines.

Infrastructure: Costa Rica opened bidding for a $770 million expansion of the San José–San Ramón highway, a key route for commuters, freight and tourism. The project covers 55.6 kilometers and is expected to benefit about 582,000 people. Digital Payments: Businesses have 12 months to register their SINPE Móvil payment numbers or face fines, giving merchants a deadline to comply with the new rules. Trade: U.S. dairy imports to Costa Rica jumped 69% after tariffs were removed, intensifying competition for local producers. Corporate Expansion: Inchcape is buying Volvo businesses in Costa Rica and Peru as it expands in the Americas, even as weaker Australian sales prompted it to cut its 2026 margin outlook. Economic Risks: Drought and energy concerns linked to El Niño are adding pressure to Costa Rica’s economic outlook.

Infrastructure: Costa Rica has opened international bidding for a $770 million expansion of the San José–San Ramón highway, a key corridor used by commuters, freight and tourists. The project would add lanes along 55.6 kilometers and serve an estimated 170,000 drivers daily. Consumer Rules: Inspections found 73% of 70 restaurants checked failed to meet price-disclosure rules, often omitting the 10% service charge; businesses could face fines. Payments: SINPE Móvil businesses have 12 months to register their payment numbers or risk penalties. Trade: U.S. dairy imports surged 69% after tariffs were removed, intensifying competition for local producers. Tourism and Energy: Tourism fell for a second month as U.S. arrivals declined, while El Niño-related drought is raising concerns about energy and economic pressures.

Dairy Trade: U.S. dairy imports rose 69% to $66.4 million through August after tariffs were eliminated. Cheese—especially mozzarella—now dominates shipments, putting pressure on local creameries, while consumers gain more choice. Public Spending: A budget committee approved an ₡8.05 billion cut to public universities in the 2027 budget, prompting protests in San José. Digital Payments: Businesses have 12 months to register their SINPE Móvil payment numbers or risk fines. Economic Headwinds: Costa Rica’s economy is losing momentum as drought and energy concerns grow; tourism has also fallen for a second month, with fewer U.S. arrivals.

Dairy Trade: U.S. dairy imports to Costa Rica surged 69% in two years, reaching $66.4 million by August 2026 after tariffs were eliminated. Cheese—especially mozzarella—accounts for most imports, intensifying competition for local creameries. Public Spending: After thousands marched against university funding cuts, lawmakers approved an ₡8.05 billion reduction to public universities in the 2027 budget. Other coverage warns of an $882 million revenue shortfall and cuts affecting public services. Business Compliance: Businesses using SINPE Móvil have 12 months to register their payment numbers or face fines. Economic Outlook: Costa Rica’s economy is losing momentum, while tourism has declined for a second month as U.S. arrivals fall. Drought and energy concerns add to the risks facing businesses.

Green Industry: Hybrida Farms says its Cartago medical-cannabis operation, which made Costa Rica’s first EU export in March, runs on the country’s 98.6%-renewable electricity grid and is creating skilled jobs. Trade & Growth: Costa Rica, Panama and the Dominican Republic are forecast to grow by an average 4.1% this year, driven by investment, services and logistics; high-value services and manufacturing exports now equal about a fifth of Costa Rica’s GDP. Business Expansion: Optical retailer MO Global plans to enter Costa Rica and five other Central American and Caribbean markets, while Southwest Airlines plans new Austin–San José and Austin–Liberia flights in 2027. Economic Outlook: Growth is forecast to slow to 3.4% from 4.6% last year. A stronger colón lowers import costs but squeezes exporters’ returns. Export Risk: Costa Rica accounted for 82% of global silky shark product exports in 2020–24, and international scrutiny could bring tougher rules or a suspension if the fishery’s sustainability cannot be shown.

Growth Outlook: Costa Rica remains one of Latin America’s faster-growing small economies, but another forecast puts 2026 growth at 3.4%, down from 4.6% last year. A stronger colón is helping importers but squeezing exporters. Air Links: Southwest plans new Austin flights to San José and Liberia in 2027, while Nashville will also gain direct service to Liberia—potentially widening access for visitors. Business Expansion: Optical retailer MO Global plans to enter Costa Rica as part of a six-country regional rollout; Toys R Us is also evaluating the market, though no opening is confirmed. Export Risk: Costa Rica supplied 82% of global silky shark product exports from 2020 to 2024. CITES may recommend tougher controls, and exports could be suspended if sustainability requirements are not met. Investment Losses: More than 6,000 European investors fear losses after Swiss teak seller Life Forestry collapsed; its plantations included sites in northern Costa Rica.

Pharma Market: Celltrion says its Remsima and Truxima biosimilars each hold nearly 100% market share in Costa Rica, strengthening its Latin American business. Retail Expansion: Spain’s MO Global plans to enter Costa Rica in 2027 with regional partner Disresa, opening optical stores across Central America and the Caribbean. Air Links: Southwest plans Austin–San José service next March and Nashville–Liberia flights from February 2027, adding U.S. connections to Costa Rica. Public Finances: The Finance Ministry expects 2026 revenue to fall ₡400 billion ($882 million) short of budget. A proposed package cuts ₡168 billion in spending and seeks ₡187 billion in new borrowing, trimming funds for courts, police and schools. Investor Losses: More than 6,000 Europeans fear losses after Swiss teak investment firm Life Forestry collapsed. It took in about CHF200 million for Costa Rica and Ecuador tree investments; Swiss prosecutors are investigating suspected fraud. Pineapple Trade: Weather disruptions constrained Costa Rica’s pineapple harvest in 2025 as global exports rose 3.7%, driven largely by increased Philippine supply.

Public Finances: Costa Rica’s 2026 revenue is projected to fall ₡400 billion ($882 million) short of budget. The government is proposing cuts to security, courts and education, alongside new borrowing that could push the deficit to its highest level since 2020. Teak Investment Fallout: More than 6,000 Europeans fear major losses after Swiss firm Life Forestry collapsed. It had sold teak trees on Costa Rican and Ecuadorian plantations and promised to harvest and sell the timber; Swiss prosecutors are investigating suspected financial crimes, with no charges filed. Tourism: Cahuita businesses report falling sales and fewer visitors after a major drug-trafficking investigation, which disrupted local economic ties and hurt the town’s reputation. Air Connectivity: Southwest plans to launch nonstop Nashville–Liberia service in February 2027, adding a direct link to Guanacaste for U.S. travelers.

Digital Payments: Tap to Pay on iPhone is now available in Costa Rica, letting merchants accept contactless payments through an iPhone and partner apps, with three platforms available at launch. Economic Outlook: Costa Rica’s economy is losing momentum, while tourism has fallen for a second month as arrivals from the United States decline. Tourism Strategy: PROCOMER is promoting Costa Rica as a semiconductor investment destination, seeking to attract firms to a high-value industry. Regional Business: Colombian burger chain Presto has entered liquidation after a failed debt restructuring; Costa Rican investment firm Mesoamérica acquired the brand in 2012, and a buyer is being sought to keep its restaurants operating. Agriculture: Rising fuel, fertilizer and shipping costs linked to the Iran conflict are squeezing banana producers, adding pressure to an industry already facing thin margins and climate risks.

Digital Payments: Apple’s Tap to Pay on iPhone has launched in Costa Rica, letting merchants accept contactless payments without a separate terminal. Three local platforms support the service at launch. Tourism: Visitor numbers fell for a second consecutive month as arrivals from the United States declined, adding pressure to a key sector. Economic Outlook: Costa Rica’s economy is losing momentum, while rising fuel, fertilizer and shipping costs are squeezing banana producers across the global supply chain. Investment: PROCOMER promoted Costa Rica as a semiconductor destination at SEMICON West, seeking to attract more industry investment.

Banana Costs: The Iran conflict is driving up fuel, fertilizer and shipping expenses for banana producers already squeezed by thin margins, adding pressure to a key global fruit trade that matters to Costa Rica’s export economy. World Cup Bid: Costa Rica remains part of the unopposed bid to co-host the 2031 Women’s World Cup with the U.S., Mexico and Jamaica; Chicago and Portland have entered the host-city race. Tourism: Costa Rica’s tourism sector has weakened for a second month as arrivals from the United States fell, a warning for businesses reliant on its biggest visitor market. Economic Outlook: Reports that Costa Rica’s economy is losing momentum add to concerns about near-term growth. Investment: PROCOMER promoted Costa Rica as a semiconductor-industry destination at SEMICON West, seeking to attract investment into a higher-value sector.

Economic Outlook: Costa Rica’s economy is losing momentum, while tourism has declined for a second straight month as U.S. arrivals fall. Transport: The licensed taxi fleet has shrunk by nearly half since ride-hailing apps arrived; industry representatives say about 6,800 of 13,500 concessions remain active. Digital Finance: Stablecoin transfers could cut remittance costs by about 84%, but reported payout completion in Costa Rica was just 73%, highlighting reliability concerns. Business Exposure: Colombian burger chain Presto entered liquidation after a debt deal failed; Costa Rican investor Mesoamérica acquired the brand in 2012, and a liquidator is seeking a buyer. Technology: PROCOMER promoted Costa Rica as a semiconductor destination at SEMICON West, as the country looks to attract investment in the industry.

San José Business: The municipality voided the Zapote fairgrounds tender after the only qualified bidder failed to submit an offer, leaving the year-end event’s arrangements uncertain. Economic Outlook: Costa Rica’s economy is losing momentum, and tourism fell for a second month as U.S. arrivals declined. Breeze is adding twice-weekly nonstop service between Tampa and Costa Rica, offering a boost to air links. Exports: Costa Rica ranked third among Spain’s fresh-produce suppliers in the first seven months of 2026, shipping 261,041 tonnes, up 13% year over year, worth €211 million. Technology Investment: PROCOMER promoted Costa Rica as a strategic semiconductor destination at SEMICON West. Transport: The licensed taxi fleet has shrunk to about 6,800 from 13,500 concessions, as operators cite competition from ride-hailing apps and unequal regulation.

Transport: Costa Rica’s licensed taxi fleet has shrunk to about 6,800 drivers, half the 13,500 concessions created. Industry groups blame ride-hailing apps and say taxis face stricter costs and rules. Tourism: September arrivals fell 2.4% year over year, the second monthly decline; U.S. visitors were down 3.3%, though Liberia airport arrivals rose 11.8%. Digital Finance: A report says stablecoin remittances can cost less, but payout completion in Costa Rica was 73%; its comparison uses figures from different periods. Trade: Costa Rica was Spain’s third-largest fresh-produce supplier by volume in the first seven months, shipping 261,041 tons, up 13%. Investment & Cybersecurity: PROCOMER promoted Costa Rica as a semiconductor-industry destination at SEMICON West. Separately, Microsoft reported ransomware attacks in the country rose 39%.

Semiconductors: PROCOMER showcased Costa Rica’s investment strategy and specialized talent pipeline at SEMICON West, where eight local companies presented solutions to prospective investors. Economic Growth: The economy expanded 2.2% year over year in August, down 3.4 percentage points from a year earlier. Growth in special-regime firms, including free-zone businesses, slowed to 0.7%, while domestic-market activity grew 3.2%. Banana Costs: Higher fuel, fertilizer and shipping expenses are squeezing growers’ margins; Del Monte has closed four farms in Costa Rica as suppliers face rising costs they may struggle to pass on. Medical Manufacturing: Cartago-based Biomerics has gone live with a digital production system, replacing lengthy paper records and embedding compliance checks in its medical-device manufacturing process. Produce Trade: Costa Rica’s fresh-produce shipments to Spain reached 261,041 tonnes in the first seven months of 2026, up 13% year over year.