Panama Facts Summary 2024

panama fact sumary
Panama Facts Sheet 
PoliticalTransparent elections since 1990
Smooth transition of power every 5 years
Long tradition of openness to foreign investments
Structural adjustments to economy proven positive
Bureaucracy reduced, but still a major factor
EconomicUS dollar is legal tender
One of the fastest growing in the world with an average GDP growth of 10.8% over the past 8 years except the period of global pandemic.
Inflation rate was  1.9% (Q1-2024)
Unemployment  7.4% (Q1-2024)
Foreign Direct Investment reached over 878.40 USD Million (2024)
Free trade agreements with more than 10 countries, including USA
FinancialNo exchange or currency restrictions
Panama´s debt is ranked “Investment Grade”, only 3 countries in Latam have this status
Moody’s raised score of Panama’s sovereign debt rating to Baa2 and confirmed its outlook for Panama to “stable”
An economic landscape of friendliness toward foreign investment with healthy and rigorous trade agreements i.e. The Investment Stability Law, the Free Trade Agreements, and Bilateral Investment Agreements (BITs)
LegalNo restriction on 100% foreign owned real estate
BITs with multiple countries securing against expropriation and other risks
One of the most flexible corporation laws in the world
No restrictions on mergers, acquisitions or joint ventures
Enforcement of foreign judgments and arbitral awards
Generous tax incentives for relocating headquarters of multinationals and now multinational manufacturing and assembly.
TaxDepending on the investment sector, the following are available:
Exemption or discount from income tax
Exemption from import tax on equipment and raw materials
Accelerated loss carry-forward
Accelerated depreciation
No foreign exchange risk
Absence of exchange controls
No restrictions on companies ownership and foreign capital
Other HighlightsPanama is rated the third most competitive country in Latin America, according to the World Economic Forum
Panama has been rated as No. 1 place to retire, according to the International Living´s Annual Global Retirenment Index 2023.
Panama has been awarded in the fifth position of the ranking “Foreigner Investment” of Latin America, according to Global Opportunity Index 2023 published by the Milken Institute.
Caterpillar, Procter & Gamble, 3M, LG, AES, TOTAL, Roche, Air China, Hershey and Heineken are some of the 189 most recent multinationals relocating their Latin American headquarters in Panama

All information above is for the current year except for economic data which is usually for the previous year.

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