Commodities - Costa Rica

Costa Rica

The nominal value in the Commodities market is projected to reach US$119.40bn in 2024.
It is expected to show an annual growth rate (CAGR 2024-2029) of 3.57% resulting in a projected total amount of US$142.30bn by 2029.
The average price per contract in the Commodities market amounts to US$0.20 in 2024.
From a global comparison perspective it is shown that the highest nominal value is reached in the United States (US$53,690.00bn in 2024).
In the Commodities market, the number of contracts is expected to amount to 630.20k by 2029.

Market

Region

Region comparison

Currency

Analyst Opinion

The Commodities market in Costa Rica is experiencing a notable shift in recent years, reflecting changes in customer preferences and local special circumstances.

Customer preferences: Costa Rican investors are increasingly turning to commodities as a way to diversify their investment portfolios and hedge against market volatility. With a growing interest in alternative investment options, commodities offer a unique opportunity for investors to spread risk and potentially achieve higher returns.

Trends in the market: In Costa Rica, there is a noticeable trend towards increased participation in commodities trading, driven by a combination of factors such as technological advancements making trading more accessible, a desire for portfolio diversification, and a growing awareness of the potential benefits of commodities in an investment strategy. As more investors seek to capitalize on the opportunities presented by commodities, the market is experiencing a gradual but steady expansion.

Local special circumstances: Costa Rica's unique economic landscape, characterized by a stable political environment and a growing middle class, has created a conducive environment for the development of the commodities market. The country's strategic location and strong ties to global markets also play a significant role in attracting investors looking to capitalize on international commodity trends.

Underlying macroeconomic factors: The stability of Costa Rica's economy, coupled with favorable government policies and regulations, has fostered a favorable environment for commodities trading. Additionally, the country's robust infrastructure and well-developed financial sector provide investors with the necessary tools and resources to engage in commodities trading effectively. As a result, Costa Rica is poised to further integrate into the global commodities market and attract a wider range of investors seeking to diversify their portfolios.

Methodology

Data coverage:

Figures are based on commodity derivatives, their notional value, the number of contracts traded, the open interest (outstanding contracts at the end of a year), and the average value of a contract.

Modeling approach / Market size:

Market sizes are determined by a Bottom-Up approach, based on a specific rationale for each market segment. As a basis for evaluating markets, we use market research & analysis, and data of World Bank, as well as the World Federation of Exchanges. Furthermore, we use relevant key market indicators and data from country-specific associations and national data bureaus such as GDP, wealth per capita, and the online banking penetration rate. This data helps us to estimate the market size for each country individually.

Forecasts:

In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the particular market. In this market, we use the HOLT-damped Trend method to forecast future development. The main drivers are GDP per capita an the online banking penetration rate.

Additional Notes:

The market is updated twice per year in case market dynamics change.