Admit it. When you think of Panama, the first thing that comes to mind is the canal. And, why not? It’s one of the world’s largest infrastructure projects ever (and about to get even bigger) and a famous international trade icon.
But what can Panama offer your business beyond the canal?
Grab a map
See it? Nicely placed between South America and Central America. A logistics heaven, and not just for ships. Many companies use Panama as a hub for Central America, the Caribbean and the North of South America.
Growth
Panama doesn’t come without its problems, including corruption. However, World Bank figures show that the country grew last year, and is forecast to grow this year and in 2016, at over 6%. Not bad when Brazil is hitting recession and the whole region is slowing down.
Love your tax
Panama has long been regarded as a tax heaven and, although the reputation is not always correct, it does offer some excellent tax advantages, for example in its world-famous tax-free zone, Colon.
At your service
Panama also offers tax incentives for service companies seeking to establish back-office support services and it’s famous for its regional call centres.
Panama is also a fast-growing financial centre. I see fintech experts from my client Infocorp travelling regularly to Panama to serve a number of financial institutions in the isthmus.
Your next (business) home
I was recently discussing relocation options with a Belgian couple who told me that Panama made it ever so easy for them to emigrate, apply for residency, and establish a business. I’ve heard the same from companies who have set up branches in Panama. If you compare that to the cumbersome processes of Colombia or Brazil, for example, you can see the attraction.
Real estate, construction and building are pretty big, too.
A day at the beach
My Copa Airlines flight to Panama from Montevideo last week seemed to be packed with tourists. I was travelling on business and therefore incredibly envious. Panama has some gorgeous scenery, including amazing beaches. Travel, tourism, transport are key sectors to target.
Luxury
Retail is strong in Panama (although probably not as developed as in Chile on the supermarket front, for example). The luxury segment particularly stands out.
And the canal…
Yes, the canal is still of critical importance to Panama, and there are so many products and services that this mammoth operation requires that, for some businesses, it’s inexcusable not to be involved.
With all this, Panama is clearly a country to take into account when developing your export strategy for 2016. Proof that certain Central American countries, like Costa Rica, deserve some of your attention…
