Panama Regional Growth & Investment Champion

Today is Panama’s second Independence Day: today celebrating independence from Spain.  Clever people, these Panamanians, getting two Independence Days!  In Boquete it is celebrated by a gigantic parade, lasting 6 to 8 hours, and featuring marching units and drum and buggle corps of young people from all over Panama, along with girls dressed in traditional Panamanian costumes, and, of course, horses.  There are loads of people, no grey barricades, hardly any police, just people enjoying their freedom and celebrating together.

It’s also a good day to take a look at where Panama has come, and where it is going.  When I talk about Panama on cruise ships I find that many Americans still view Panama in terms of the Noriega years, which is a little like viewing the US in terms of Watergate.  It is ancient history.  Today Panama is rapidly becoming the “Hub of The Americas” and an increasingly strong economic player.  A neutral country, Panama currently has one of the revolving seats on the UN Security Council.

In a LATIN BUSINESS CHRONICLE report, entitled “Why Multinations Are Increasingly Choosing Panama As A Regional Hub,” Joachim Bamrud writes, 

Brazil and Mexico may be getting most of the foreign investor attention in Latin America these days and Chile continues to be seen as the region’s free-market champion, but Panama isn’t doing so badly, either.

In the past few months, Panama has topped several key regional rankings. In addition to being named the most globalized country in Latin America last week by Latin Business Chronicle, Panama recently was ranked the best country for exporting and importing containerized goods in Latin America by the World Bank, the fastest-growing tourism market in Latin America by the World Tourism Organization and last, but not least, the fastest-growing economy in Latin America by the International Monetary Fund and the United Nations Economic Commission for Latin America and the Caribbean (ECLAC).  That comes in addition to being ranked third in Latin America (after Chile and Mexico) when it comes to competitiveness, according to the latest annual index from the World Economic Forum released this month. 

And Panama can also boast having Latin America’s largest number of international bank offices, the world’s largest shipping registry and the second-larges free trade zone in the world after Hong Kong. Now, it may also become a major regional energy hub. Spain-based Tecnicas Reunidas and Singapore-based Jurong Consultants are planning to create a $40 billion oil refinery, petrochemical production facility and liquified natural gas import terminal aimed at serving the U.S. and Asian markets, Reuters reported last week. That comes on top of U.S.-based oil giant Occientalís plans to build a $8 billion refinery . . .

Panama’s GDP is expexted to expand by 8.5 percent according to the International Monetary Fund.  Growth is expected to be driven by expansion of the canal, ports, foreign trade, real estate, telecommunications, tourism and banking.  Touists are discovering Panama and Tocumen is rapidly becoming the airline “Hub of The Americas.” . Last year, Panama received 843,000 international arrivals, a 20.1 percent increase from 2005 and nearly twice the level of 2000, according to the World Tourism Organization. 

We are happy to be a part of this exciting and beautiful country!  Happy Independence Day!