Panama a Top-notch Place to Do Business in 2009

Nov. 12, 2008
Panama City, Panama

Not yet a subscriber to Panama Insider? Find out how to sign up here.

Dear Panama Insider,

You've heard the buzz about business in Panama…but as we look toward 2009, is investing in Panama still a good idea? The World Bank indicates the answer is a solid "yes."

According to the 2009 predictions study, Panama ranks among the top countries in the region for ease of doing business. Panama moved up five notches from No. 11 last year to the No. 6 spot overall, based on rankings in various categories. Some of the categories in which Panama excels include:

Though it's pretty easy to do business in Panama, there's always room for improvement. Over the past year, Panama passed only one reform to improve ease of doing business—the country changed its credit history law to make credit more accessible for small and medium-sized business. Panama tied with other countries in the region such as Brazil and Argentina, which also made only one reform. Colombia led in this category with five reforms, followed by Uruguay with three. Read more about the report at www.doingbusiness.org.

Just recently, the World Bank also announced that it had approved a $60 million loan to support Panama's public finance reform program. The bank cited Panama's "excellent economic growth performance" over the past three years and says the program is helping create an even more stable economic environment in Panama. The more stable the economy, the more Panama will be able to continue attracting foreign investment.

More proof of how safe it is to do business in Panama: Regional World Bank representative Felipe Jaramillo says that of all the countries in the region, only two stand out as the "best prepared" to face today's world economic crisis, based on GDP growth, productivity growth, and high position in the bank's country-risk index. The two countries are Peru and…you guessed it…Panama.

Thanks for reading,

Jessica Ramesch
Editor, Panama Insider