Panama is a country that is characterized for having, for some years, a lot of Foreign Direct Investment (FDI), which is considered as a significant variable in the growth of the Panamanian economy. In fact, Panama is among the best economies on the continent. In our article today, we will take a look at some indicators that position Panama as an ideal site for investment.

Investment in Panama has become, in recent years, the main driver of the growth of its Gross Domestic Product.

Investment in Panama – Gogetit Highlights

  • The privileged strategic position of Panama and the logistics platform made up of the Interoceanic Channel, Atlantic and Pacific ports, roads and air connectivity, make Panama a valuable destination for investment.
  • Panama’s Foreign Direct Investment (FDI) grew by 6.5% in the first half of 2016, compared to the same period in 2015, reaching US $3.018 billion, according to a report from the Ministry of Economy and Finance (MEF).
  • Among the economic activities that receive most Foreign Direct Investment are wholesale and retail trade, financial and insurance activities, transportation, storage and mail, and electricity, gas and water supply.

investment

It is no secret to anyone that one of the countries preferred by many people to invest in Latin America is Panama. The stability of its economy, its privileged geographical position and its low unemployment rate are just some of the factors that predominate, among many others. More and more people are considering investing in the country, thus increasing Foreign Direct Investment.

If we take a look back, we can see that by 2014, Foreign Direct Investment in Panama was four billion dollars, which meant an increase of 1.4%, compared to 2013. In addition, in the last years, the Gross Domestic Product (GDP) has increased positively, since in 2014 the economy grew 6.2%, in 2015, it grew 6.3% and is expected to grow to 6.5% by the end of 2016.

You might be interested in: Panama’s economy in 2016 is the #1 in growth in Latin America.

Panama has a low unemployment rate compared to the rest of the Central American countries, standing at 4.8%. This year 2016, is the fourth consecutive year that increases the unemployment rate, which was 4.2% in August 2012, 4.3% in August 2013, 5.1% in August 2014 and 5.3% in August 2015. It is also important to emphasize that Panama has a good place in the competitiveness indexes, since it has been the economy that has grown the most after Chile.

Since 2004, Foreign Direct Investment has exceeded $1 billion, a true record for the country. Since then, it has been leading the Central American region in terms of amount of investment and ranks second in per capita foreign investment in Latin America, after Chile.

On the other hand, the large number of multinational companies that have established themselves in the country, is a boom to the economy. More than 120 multinational companies are established in the country, including Procter & Gamble (which has a hub in the Colon Free Zone), Huawei, Hewlett Packard, Dell, Bayer, Halliburton, Visa and many more. They are attracted by the robust economy and the incentive laws that exist for these companies to establish their headquarters in the country.

Everything seems to indicate that, over the years, investment in Panama will reach high levels and Foreign Direct Investment will increase considerably.