Panama continues to be a safe bet for foreign investment!

Blog by Manzar Lari


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So what is all the buzz lately about Panama? The Panama Canal expansion project is coming along superbly and all the infrastructure projects, while creating temporary inconveniences, are underway as well. This is truly a country in flux! We see examples of this change all over Panama City as well as the Pan American Highway construction project. The new light rail has been well-received by locals and tourists alike. We are coming into our own in Panama and it feels good! The foreign money is also pouring in to help the cause.

What does it mean when a small country like Panama sees a dramatic uptick (of 32% growth) in foreign investment after years of solid gains?  It appears the smart money knows where to go.  Panama is the only country in Central America seeing increases of this sort.

Where is the money going? According to a recent study…”Hotels, banks, real estate, electricity generation, commerce and manufacturing” were the primary recipients.

The money keeps pouring into Panama due to “investors’ confidence in Panama and its favorable outlook, thanks to the country’s strategic location, steady growth and high rates of return on public and private projects being developed domestically.”  

Some other factors you can add are the dollar-based economy, pro-business government, Canal expansion nearing completion, mining projects, and an enhanced tourism profile among other factors.  They all point to Panama as a great investment for the future.

Expect investment in and media coverage of Panama to reach crescendo as the Canal expansion goes into operation next year in 2016.

Headlines like the following from our neighbors further confirm what we have been hearing from reliable sources all along:

“Foreign Investors Skip Costa Rica to Focus on Panama”

The Costa Rica Star, June 20, 2015

Panama City, Jun 18 – Foreign direct investment (FDI) totaled $1.7 billion in Panama in the first quarter, up 32.2 percent from the same period in 2014, the National Institute of Statistics and Census, or INEC, reported.

Foreign capital flowed mainly into hotels, banks, real estate, electricity generation, commerce and manufacturing, the INEC said.

Some 65 percent of FDI in Panama comes from reinvested profits, while 22 percent comes from purchases of Panamanian companies’ shares by investors based overseas, the INEC said.

Companies operating out of the Colon Free Trade Zone contributed $123.7 million to FDI growth in the first quarter, a 17 percent increase over the January-March 2014 period.

The increase in FDI is due to “investors’ confidence in Panama and its favorable outlook, thanks to the country’s strategic location, steady growth and high rates of return on public and private projects being developed domestically,” the Economy and Finance Ministry said in a statement.

“Panama offers favorable conditions for the reinvestment of foreign investors’ profits, and the volume of additional investments is a solid vote of confidence on the business climate and Panamanian institutions,” the ministry’s director for social and economic analysis, Rogelio Alvarado, said.

Foreigners have pumped $11.21 billion into the Panamanian economy over the past three years, Alvarado said.”

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The New Biodiversity Museum in Panama City – Architect: Frank Gehry!


New buildings keep popping up around the country, especially in Panama City. The skyline is continuously evolving and becoming a lot more interesting. Plans are underway to totally transform the area around Amador Causeway. The Biodiversity Museum, designed by the famous architect Frank Gehry (above), opened recently to rave reviews. A trip to Panama City needs to include a visit to this new museum.

Check out this website that shares a lot of details related to different key indicators of growth in Panama:

Another good site from the British Government that has information about Panama trade and export guide:

Wow, so much information! Makes your head spin! At Casa de Montaña Bed & Breakfast we try to focus on things we do best – taking care of your needs while you are here! Come down and visit us and if you are in a mood to “invest” your money in Panama by buying some real estate in the Boquete area, let’s have a chat during our Social Hour or during our popular “Boquete Overview Tour”. See you soon.

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