News

Foreign Direct Investment (FDI) in Panama is growing at a steady rate, outpacing most countries around the world, according to new data released by the government. In the first quarter of 2017, FDI in Panama increased by 10.7 percent over the same period a year earlier, the government’s National Statistics and Census Institute reports.

The growth reflects foreign companies investing in a Panama economic economy that continues to grow at 5 to 7 percent a year. Beyond the Panama Canal and building around the ports, several sectors are expanding, including construction and the financial community.

The recent FDI numbers illustrate that “foreign companies decided to reinvest their profits, which is the biggest boost to the growth of investments,” the Comptroller’s office said in the report.

FDI provides one of the best barometers of the health of a country’s economy. More than anything else, FDI serves as something of a confidence index, representing foreign sentiment about the local prospects.

In Panama’s case, foreign companies clearly see the country as a stable environment with solid long-term prospects. By growing their investment in Panama, they are making it clear they see opportunity in the business environment.

Panama is also bucking the trend. In 2016, global foreign direct investment fell by 2 percent, according to United Nations trade and development agency. Overall investments are expected to grow in 2017, thanks to an uptick in international trade, the UN group reports.