Panama has a solid foundation of economic and political stability. Panama grew at 8.4% in 2013 – the second-fastest growth rate in Latin America and the Caribbean. Average growth over the past decade has been 8.7%, Latin America’s fastest, including 3.9% during the global slump in 2009. Thanks to good macroeconomic policy making, it has a history of low unemployment (currently 4.1%), and low inflation (4%). An upper-middle income country, it has free-flowing capital and attracts one of the highest rates of FDI in Latin America at 11.7% of GDP in 2013, compared to Mexico’s 1.3%. Between 2007 and 2013 Panama doubled its GDP.
With the Panama Canal expansion works going into full gear, the construction of a Metro system in Panama City and several large infrastructure projects such as roads, convention centres, hospitals, utilities and social housing, growth is expected to remain strong over the coming years, although lower than in the past five. Panama is a hot destination for foreign investment, with the UK being the second largest investor. Panama is a hub for air travel, maritime transportation, financial services, telecommunications, distribution of goods and regional headquarters.
About the guides
The main objective of this Doing Business in Panama Guide is to provide you with basic knowledge about Panama; an overview of its economy, business culture, potential opportunities and to identify the main issues associated with initial research, market entry, risk management and cultural and language issues.
We do not pretend to provide all the answers in the guide, but novice exporters in particular will find it a useful starting point.
This FREE guide is available in 4 formats:
Available on the iTunes App Store and Google play