Panama is among the top five countries in Latin America with the greatest potential to attract foreign investment, according to the Milken Institute. This is due in part to Panama’s robust regulatory environment to ensure transparency and fight money laundering.
Since 2016, Panama has joined several international partnerships to evaluate existing processes and develop the best possible transparency framework, including the Multilateral Competent Authority Agreement (MCAA), the Multilateral Convention to Implement Tax Treaty Related Measures to Prevent Base Erosion and Profit Shifting (MLI) and the Mutual Administrative Assistance in Tax Matters (MAC).
Panama’s well-developed Financial Services sector is another reason why Panama has become a desirable location for investment in Latin America. The sector has been a stalwart in Panama’s economy for decades, building wealth and generating prosperity due to Panama’s industry-friendly regulations, supporting services and experienced workforce.
The sector employs 26,000 Panamanians and provides the financial backbone for Panama’s micro, small and medium-sized enterprises, which comprise 90% of Panama’s businesses and 70% of Panama’s jobs.
Despite the challenges that Panama, like all countries, has faced during the pandemic, international markets have continued to recognize Panama’s political and financial stability. Not only has Panama been able to successfully mitigate the financial impacts of the pandemic, but just recently Panama’s National Bank issued a 10-year bond for $1 billion – and it was oversubscribed by close to $5 billion. This demand further solidified Panama’s standing to the world, demonstrating that the country’s economy remains strong and that investors trust Panama’s approach to financial recovery from the pandemic.
Our stability is also thanks in large part to our diversified economy which is less exposed to macroeconomic shocks than other economies in the region and ready to take on the challenges of a 21st century economy.