Diminishing Potential
Costa Rica is losing her potential to attract new foreign investment, as compared to other countries, according to the 2006 World Investment Report, issued by the United Nations.

This is so even though in the last three years there was a boost in direct foreign investment, which places the country third in per capita reception of investment in Latin America.

Last year, Costa Rica attracted us$861 million, 50 percent more than five years ago, and this year it will reach us$1 billion.

The country dropped six positions in the potential to attract investment index, to position 75 in 2004, after it had been 69 in 2003.

According to analysts, even though the country had been in lower positions in the past, now it has to address the shortcomings that have hurt its ability to attract foreign investment.

The 2006 World Investment Report focuses on the rise of foreign direct investment (FDI) by transnational corporations (TNCs) from developing and transition economies.

The Report examines the magnitude of this phenomenon and examines its drivers and determinants, i.e.: what economic factors and policy developments lead firms from developing countries to venture abroad? For low-income countries, FDI from developing countries can be of great importance.