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As one of the world’s freest and most vibrant economies, Panama is a country that’s rich with opportunities for both local and international entrepreneurs. Fuelled by foreign direct investment and its import and export market, Panama is a top choice for businesses who wish to expand their presence in Latin America.
Panama has grown at an unprecedented rate in the past ten years. Between 2013 and 2018, GDP per capita increased from US$11,841 to US$15,090, and its country-wide GDP increased by a third from US$45.6 billion to US$61.8 billion. The country, on average, grows more than five percent per year, and several new infrastructure projects, such as an additional Panama Canal bridge and the Colón Urban Regeneration scheme, are helping to fuel the economy and encourage foreign direct investment (FDI).
Panama’s government is working hard to bolster its economy. On top of these new developments, the Panama Government has been running a five-year ‘Strategic Development Plan’, which began in 2015 and ends this year (2019). The scheme covers five key concepts, all designed to boost inclusion and competitiveness in the country.
- Enhance productivity and diversify growth
- Improve the quality of life
- Strengthen human capital
- Improve infrastructure
- Improve environmental sustainability
This new strategic plan sits alongside the recently announced ‘Visión 2030 Panama’ scheme which was introduced by Panama’s Vice President Isabel de Saint-Malo of Alvarado and the President of the Council, Luis Ernesto Carles. The plan is to encourage foreign investment and build a smart city for current and future generations, off of the back of macroeconomic stability created by the Panama Canal and other infrastructure
Panama is halfway to the implementation of a major infrastructure strategy. They currently have a plan for public investment, where 55% is allocated to social infrastructure. There is also important railway infrastructure projects in progress.
There are other infrastructure projects that offer opportunities for new investors and ensure a profitable business in Panama, such as:
- living place
- Roads and urban planning
- Technical and professional schools
- Health centers
- Liquefied Natural Gas (LNG)
- Expansion of the port to support expansion of the Panama Canal
2.- Power and renewable energy
In a recent study, Panama was the third most attractive country for those who want to invest in :
- Thermal solar energy
- Wind power
- Clean Coal Energy
- Clean Energy through Liquefied Natural Gas
- Hydroelectric power
3.- Generation of electricity, transmission, and distribution
Panama seeks to become a power center for the region. Recently it completed the connection of Central America and it is carrying out a line of distribution with electrical interconnection between Colombia and Panama.
In August 2017, a new law was established to promote the construction and operation of natural gas-fired power plants for the supply of electricity. So this area is a good opportunity for a profitable business for those looking to invest in Panama.
Panama seeks to increase support for the agricultural sector. It is necessary to raise productivity to meet the demands of the market and its progressive growth. There are excellent profitable business opportunities in Panama for investors who have the technology and ideas to help increase productivity in this area.
Panama’s policies have encouraged English through overseas training programs in English-speaking countries. In addition, there is the ‘Panama Bilingual’ project that began in 2015, where all teachers and students must be trained to learn English. This has created a number of profitable businesses in Panama, for private investors and for companies or institutions of higher education in the teaching of languages in Panama.
6.- Ports and sea
The infrastructure of the Panama Canal and its ports is collectively the largest in Latin America. Further expansion of the Canal will be required to meet future demand. This includes maritime services around an extensive port infrastructure and distribution logistics related to these services. It also opens up the opportunity for those who want to offer maintenance and cleaning services to a large number of ships that pass through. Without a doubt, the Panama Ports sector is one of the profitable businesses in Panama for those who want to multiply their assets.
7.- Real Estate
Mainly due to the great economic growth that Panama has had in recent years, this has resulted in a significant number of new residents and citizens, therefore, housing is required for the residence and vacation stays of these new inhabitants. It is necessary to increase the production of this sector to satisfy the high demand, reason why investing in Real Estate in Panama, is one of the opportunities better seen by the eyes of the experts.
Without a doubt, the tourism sector is also a very profitable business in Panama, originated by the boom that has had this country. In this sense, the opportunities to undertake in this area, are overflowing. You will be able to invest in transportation for tourist purposes, walks and tours, resorts, restaurants, discos, casinos, etc, with a high probability that your capital will be strengthened quickly.
Investing in the transportation sector in Panama will always prove to be a very profitable business, you can set up a taxi or private transport line, from airports and tourist hotels, any of these options are perfectly viable to ensure a good business since Every day the population grows more in this country.
Experts predict that Panama’s economic growth will remain strong in the coming years. If you are thinking of investing reliably, we invite you to take into account these recommendations of the most profitable businesses in Panama.