Foreign Direct Investment (FDI) in Panama climbed 16.9% in 2015 to over US$5 billion, according to reports from the Comptroller General.
Rogelio Alvarado, director of economic analysis at the Ministry of Economy and Finance, stated that much of this amount is re-investment, or money brought into the country by entities that already have an existing stake in the country.
“Instead of looking for an investment in another country, investors prefer to stay in business here because they have confidence in the country. In addition, foreign investors are expanding production capacity in the country,” he said.
According to La Prensa, the Economic Commission for Latin America and the Caribbean stated that Panama has the largest FDI in the region in relation to the size of its economy reports, adding that Panama “is well positioned to continue to receive investments.”
The expansion of the Panama Canal and of the maritime industry as a whole, as well as the promotion of free trade zones are considered key factors for attracting investment.
There have also been large sums of foreign capital invested in other sectors, including renewable energy and mining.