Panama’s economy has only recently gained significant global recognition, despite nearly double-digit growth over the past ten years. And this year, it appears that the growth trend is continuing stronger than ever. Panama is a small country with a lot of potential, open markets, and favorable investment and lender regulations. It’s also one of the best logistically placed countries for business in the hemisphere. In recent statistics marking economic strength and competition, Panama ranked 2nd in all of Latin America, and in the top 50 in the world; and for a nation that’s growing so fast, these numbers are impressive.
Panama’s positive competitive economic breakdown
The measurement of Panama’s economic competitiveness is based on a yearly study done by the World Economic Forum. And while Panama is still far from a top ten country, it’s considered a fast-growing one, and a transitional economy. This means that its competitiveness is not only growing, it’s growing at a faster rate than almost all other countries in Latin America (the lone exception being Chile). When it comes to land and seaport infrastructure, Panama is in the top ten. And on the Foreign Direct Investment (FDI) scale, Panama ranks 9th worldwide.
Why is Panama’s economy so competitive?
When looking at Panama’s economy through the eyes of foreign investment potential, there are some immediate signs you can see that match its reputation. For starters, Panama is far less regulated than a lot of Latin American countries, without loosing its economic safety and currency stability. This opens the doors for a lot of new business to operate out of Panama, both from foreign and domestic companies. Industries like banking, shipping, industrial construction, and real estate are some of the hottest growth industries; and they’re fiercely competitive. Low interest rate loans make it easy to get a head start, plus favorable tax exemptions for corporations give Panama an edge that is virtually unmatched in the Americas.
New projects inspire growth, and create sustainable atmosphere for added investment
In a way, many of Panama’s most ambitious projects are a big reason for generating their own competition. In other words, so much new investment has come so fast, that many companies and investors are using that as precedent to compete for their piece of the pie. It seems like a risky move to play “follow the leader”, especially in an ever-changing volatile global economy. However, in Panama, this base of new investment and new development represents future trends that are considered stable based on its current resources, and economic climate.
How you can be a part of Panama’s competitive, growing economy
One of the biggest benefits to Panama’s current economic growth is that it is very favorable to foreign investment. Investing in Panama can be both an efficient, and lucrative way to jump-start your business or create a new one. There are many options out there as far as investment opportunities go, so before you make any decisions we recommend doing some serious research first. We also recommend you consult with both a local financial advisor, as well as a reputable locally based attorney.
For more info on what Panama’s competitive economy has to offer, contact us today for a consultation. We can give you a thorough overview of what types of investments are right for you, and how to put your plan into action, both efficiently and effectively.
