News

Panama’s global reputation as a hot spot for business and investment continues to grow, as evidenced by a recent article in a South Africa publication, entitled “Panama: Locks, stocks and a smokin’ economy.”

The article in the Daily Maverick offers an analysis of Panama’s success, noting the economic growth has not happened by accident. Beyond the driver of the Panama Canal, key tax plans and economic incentives have helped spark the economy and keep it strong during the global cycles.

“Along the Panama Canal, the types of businesses, international and non-governmental organizations, and research institutions are carefully selected on account of their technology and knowledge component,” the authors write. “It is about putting in place the conditions to attract the right skills and businesses.”

The article provides a nice history of Panama’s economy making it clear that it is more than geography driving the country’s success.

“Geography is no guarantee of success,” the article notes. “Panama could have been Nicaragua, the difference between an $8,200 per capita economy, and that of $1,450.”

Geography, regional and global connectivity, and complimentary government policies are spurring Panama’s success, former Panama president Nicolás Barletta told the publication. The dollar-based economy and friendly tax deals for corporations and retirees have helped provide a steady flow of international interest, he said.

The article also notes the development of Panama Pacifico, the former Howard air force base, and the City of Knowledge, another former base now used as an innovation center employing 5,000 people, as examples of Panama’s long term investments that are paying off.

Read the full article here.

Duncan McGowan is president of Punta Pacifica Realty, a Panama real estate agency focused on Punta Pacifica, the exclusive neighborhood of 18 towers perched on the edge of the Pacific Ocean.