a) Despite the 2008 global economic crisis, Panama’s economy has experienced steady growth since 2005 with low inflation, low unemployment, and steady GDP growth. Panama’s steady growth and economic stability far outweigh the United States relative to GDP. Panama has had the fastest growing economy in Latin America in the last fifteen years.
b) Panama has an investment grade credit rating (BBB from S&P and Fitch; and BA2 from Moody’s) with a positive outlook from both S&P and Moody’s. Panama is one of the five Latin American countries that has an investment grade sovereign credit rating (the others are Chile, Peru, Colombia and Mexico).
c) Panama will be the richest country in Latin America in 2021 according to Moody’s. Panama’s credit rating is determined by four factors: a strong economy, strong institutions, tax policies, and the ability to recover from risky events. Panama is a service economy that has a positive growth trajectory. It has a positive credit history with low refinancing, with an unchanging risk rating and a constant flow of income associated with contributions from the Panama Canal. Panama will continue to improve its position as a logistics center and is on its way to becoming the richest country in Latin America in terms of purchasing power per capita in 2021.
d) It is one of the countries in the region where it takes the least amount time for an entrepreneur to open a business, an average of six days according to the World Bank, and ranks 38 out of 189 in terms of facilities for creating a new company.
e) 5% of world trade passes through the Panama Canal.
f) The US dollar as a currency provides us with a strong and competitive financial center.
g) Protected foreign investments. The Civil Code of Panama, the Constitution and its Foreign Investment Law ensure that foreigners have the same rights as Panamanians with respect to property, investments and business.