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The World Bank Group’s Doing Business website ranks countries for ease of doing business. Panama ranks 81st out of 181 economies ranked. Panama ranks eighth in doing business across borders. Panama ranks twenty-eighth in getting credit for doing business. Within the Western Hemisphere Panama ranks eleventh overall out of thirty-one countries.

Ease of Doing Business in Panama: the Numbers

Getting Credit and Panama Real Estate Investment

Panama is in the midst of an economic boom. Ever since the USA handed over the Panama Canal the world has ceased thinking of Panama as a US colony and increased its investment. Panama has the highest per capita foreign investment in Latin America. With high ratings for good governance Panama is seen a good place for investment in business and real estate. As the Doing Business figures show Panama ranks high in getting credit.

Doing Business breaks down getting credit into three categories. These credit categories are a legal rights index, a credit information index, public registry coverage, and private bureau overage. Panama rates 6 out of 10 for its legal right index reflecting how laws are designed to make credit available. Panama rate 6 out of 6 in the credit information index reflecting access to and accuracy of credit information.

It is of note that recent changes in Panama’s credit laws have opened credit access to as many 300,000 small businesses which employ the bulk of Panama’s work force. In a country where traditional lending on a small scale has often been from pawn shops and street lenders charging 10% every two weeks this is a dramatic change. Much is said of Panama’s real estate market benefiting from North Americans taking advantage of Panama’s residency requirements to retire in the tropics. Panama’s real estate investment market is also benefitting from Panama’s many megaprojects such as the Panama Canal Expansion. However, over the long haul the access to reasonable credit to an emerging and enlarging middle class in Panama will probably trump all other contributors to Panama’s long term prosperity.

Panama is the country at the South end of Central America. As the narrowest spot in the Americas it is the location of the Panama Canal which connects Atlantic and Pacific. Panama’s central location between North and South America makes Panama a transportation hub and a place for investment in transportation, repackaging and reshipping, and light assembly of parts.  Panama is a great place for investment in real estate. With credit laws helping Panama’s expansion investment in commercial real estate becomes more and more attractive.

Doing business in Panama can be quite profitable. Doing business in any foreign country can present problems for the unwary. The best way to avoid dealing with business paperwork and employees in Panama may well be investment to buy, develop, and lease real estate. Your investment in Panama real estate will grow year by year and as Panama’s economy moves on your returns on investment will grow. As someone else stands in line to do paperwork you can walk on one of Panama’s many beaches. Let someone else deal with the paperwork while your investment grows with Panama’s economy.

For more information on real estate investment in Panama contact us at ABPanama. We do business throughout Panama and have over 23 years experience managing real estate portfolios.