There is definitely more to Panama than just a canal, especially when it comes to reasons for investing in this Central American country. Although, the canal is a great contributor to the rising economy and increasing investment opportunities that do exist in the country that serves as the connector between North and South America, many other factors contribute to why you should invest in Panama.
Why Invest in Panama?
Many reasons currently exist, and many developments are taking place, that will contribute to the reasons for investing in the country of Panama. Banking, tourism, shipping and agriculture are among many of the industries on the rise in this bustling trade zone. Advice: it’s better to invest now than to regret it later.
The U.S. Dollar Eliminates Risk
Since 1904, Panama’s official currency has been the US dollar. Within the country, it is called the Balboa, for nationalistic reasons. Panama uses the US dollar as its legal tender, virtually eliminating any currency exchange risks to foreign persons or companies operating in the country.
Banking
Panama has a bustling banking industry, one that rivals those of Switzerland and Hong Kong for its variety of products, services and privacy laws. As a result, some of the world’s most stable banks do business in Panama. In current times, that’s a pretty big draw.
Panama has the most modern and successful banking center in Latin America, with more than 85 banks in 35 countries. Some of the banks present in the International Banking Center (IBC) are: Citibank, HSBC, Dresdner, Bank of Boston, International Commercial Bank of China, Banque Sudameris, along with many more. And, Panama’s new banking law meets the standards of leading financial centers around the world for transparency and regulation.
Economy
Panama is ranked as one of the world’s freest economies, while also being one of the healthiest in Latin America. Panama’s unique free trade platform gives way to the complete confidence investors have in the region. Panama is home to the Colon Free Trade Zone, the largest free trade zone in the Americas, and the second largest in the world.
Easy Access to Capital
Panama is at the top of the list of the countries with best access to capital, ranking in Latin America only after Chile and Brazil, according to a report from the Milken Institute published in 2005. This report took into account the economic environment, banking development, capital markets, international recognition and sovereign risk.
Recent developments of the Panama Canal, including expanding ports and increasing capacity, will allow Panama to increase transshipments. Over the years, this will prove to boost Panama in rankings in terms of transshipment centers in Latin America, eventually reaching number one in the region. Not to mention, Panama is Latin America’s leader when it comes to the overall environment for importing and exporting container goods. According to data from the World Bank, Panama is the least expensive country in Latin America to export from.
Opportunities
Panama offers a plethora of investment opportunities, some of which include:
• Tourism
• Financial Services
• Export Industries
• Ports and Maritime Industries
• Internet and Ecommerce
• Telecommunications
• Energy
• Real Estate
• Petroleum Free Zones
• Mining
• Reforestry
Also, Panama’s profound international credibility (Panama provides important incentives for foreign investors) adds greatly to the fact that Panama is ranked in the top three countries of the hemisphere with the best risk-investment qualifications.
All of this, combined with the fact that Panama is ranked first in the region for low operational cost and index of labor, contribute to the rise of this small nation as an investor’s haven. Now is truly the time to invest in Panama.
{ 2 comments… read them below or add one }
Allen Taylor 12.03.08 at 6:00 pm
Nice writing. You are on my RSS reader now so I can read more from you down the road.
Allen Taylor
Playa Blanca 12.10.08 at 7:44 pm
@Allen Taylor Thank you for reading! And thanks for the great compliment. There will surely be more to come, and feel free to leave us any suggestions or requests if there is anything specific you’d like to read about Panama! Thanks again for checking out the blog!