REPUBLIC OF

MARITIME ROUTES

AIR ROUTES

TELECOM CONNECTIVITY

Capital : – 16 Canadian and United States locations served directly from – Panama is home to ’s two most active ports – one on – Fastest broadband download speeds in Area : 75,517 km2 Panama City including Los Angeles, New York and Toronto. each of the Atlantic and Pacific Oceans. Central America. Population : 4.06 million – 40 Canadian and United States cities are served via connections. – Around 8% of total world trade passes through the Panama Canal and – Panama is the continental link of 7 GDP : $55.23 billion most locations in the Americas can be reached within 10 days sail. GDP per capita : $13,514.75 – 81 international destinations directly served in 2016 from virtually unlimited bandwidth. Inflation Rate : 0.70% Panama City. – Panama and the eastern seaboard of the United States share the Currency : U.S. Dollar same time zone. – As of 2015, Panama has the lowest – Flight times to Los Angeles are typically under 7 hours while Languages : New York can be reached in just over 5 hours of flight time. – 144 maritime routes to 1700 ports in 160 countries. : English (commercial) charge of any Central American * Government : Constitutional Democracy – Amsterdam, Frankfurt, Istanbul, London, Madrid, Moscow, Paris – Rated 5th worldwide for quality of port infrastructure.* country.

Time Zone : UTC−05:00 and Rome are all served directly or via connections. *Source: Global Competitiveness Report, World Economic Forum, Switzerland, 2016-17. *Source: International Telecommunication Union. Information for Belize and El Salvador not available. A leading location for foreign direct investment

Inward FDI flows, US$ millions, Panama, 2010-2016

10 6000 9.67% 5,209 8 8.40% 5000 4,458 4,494

tion of GDP (%) 6 6.83% 3,943 5.93% anama, 2010-2016 4000 opo r 5.39% 4 3,153 3,211

w as a P r 4.13% 3.69% 3.65% 3000 2,723 s, US$ millions, P 2 2.65% w d FDI Fl o 1.99% 1.89% 1.66% d FDI fl o r Inwa r 2000 0 Panama Nicaragua Honduras Costa Rica Belize Guatemala El Salvador Inwa 2010 2011 2012 2013 2014 2015 2016

Source: UNCTAD: World Investment Report 2016 Source: fDi Intelligence based on UNCTAD: World Investment Report 2016 and IMF: World Economic Outlook Database

Why have foreign companies invested in Panama? 85% 43% $5.209bn 25% 23% Panama received more Inward FDI flows in Panama has increased by over 85% than 43% of all FDI in totalled US$5.209 billion in 25% 23% in the period 2010-2015. Central America in 2015. 2016. Domestic market growth potential

DomesticR maregulationsket growth potential / business climate Regulations / business climate 1 Proximity to markets / customers FDI is as overseas Proximity to markets / customers investment in a new physical project 5% 5% Infrastructure / logistics 260+ 9.67% or expansion of an existing project Infrastructure / logistics which creates new jobs and capital Industry cluster / critical mass Panama receives the most Industry cluster / critical mass investment and with majority- 8% 22% Other motive foreign direct investment ownership by the foreign investor. 1 Other motive FDI projects in as a percentage of GDP Mergers and acquisitions (M&A) and 8% 22% other equity investments, along with the country between 2003 out of any country in the retail FDI projects, are not included. 2 18% and 2016. Latin America & Caribbean 2 Up to and including September region (2015). 2016. 18% Source: fDi Markets Panama is the destination of choice for Multinationals under MHQ regime Multinationals investing in Latin America +135 (Law 41 of 2007)

Asia Europe

North America

South America

Australia Panama’s key strengths Service-oriented economy Strong Financial Services Sector

Stable and growing economy Local and international banks 7.57% operate in Panama, establishing the 25% 12 out of 14 sectors in Panama are showing positive economic growth, including all 94 country as a regional banking hub. Panama’s average annual Panama has one of the growth rate between Compound annual average GDP growth rate (%), 2005 and 2015 was more rates in the Americas – than double the Latin top 10 Latin American & Caribbean countries, 2017-2021 substantially cheaper than GDP by sector share (%), Panama, 2015 In Latin America and 2nd in all of America & Caribbean the United States, Canada, the Americas for ease of access to average (3.03%). 1st Mexico and Costa Rica. 7 credit (8th globally, improvement of 5 places from 2015-16).

6 6.13% 7yrs 7% Within the Americas for 5 Panama has 7 Panama has the lowest Financial services Real estate Communications, Construction Commerce 1st (6th globally, improvement of 12 and leasing consecutive years of FDI sales tax in Latin America. 7.74% storage and 14.77% 17.63% places from 2015-16). 4.5% growth. 8.73% transportation 4 4.16% 14.31% 4.07% 4.00% 3.87% 3.80% Source: El Instituto Nacional de Estadística y Censo (INEC) 3.53% In all of the Americas in terms of 3 3.01% Annual GDP growth (%) by sector, Panama, 2015 1st meet business needs (5th 2 worldwide). Panama is a business hub for companies 1.86% worldwide due to its strategic location as well as 1 economic growth in recent years. Globally for its soundness in banks. 0 11th Panama Dominican Costa Rica Colombia Nicaragua Guatemala Honduras Argentina Brazil President, Mining & Quarrying Real estate, business Financial services Private healthcare & Electricity, water Republic 6.99% and rent activities 10.41% social services activities and gas supply 8.13% 11.59% 13.63% Source: Global Competitiveness Report, World Economic Forum, Source: fDi Intelligence based on International Monetary Fund: World Economic Outlook Database October 2016 Source: El Instituto Nacional de Estadística y Censo (INEC) Switzerland, 2016-17. Wide Network of Trade Agreements European Union EFTA Israel* South Korea*

Asia

Canada Europe

North America

United States

Mexico

Cuba Dominican Trinidad Republic and Tobago

South America Guatemala Nicaragua Costa Rica

El Salvador Honduras

Singapore

Colombia Peru *Currently under negotiation

Chile ALADI

Panama has the most trade 20 20 agreements of any Central 15 American country. 10 12 20 60 1.3bn +$29,000 10 9 9 9 Trade agreements. Countries reached. Access to 1.3 billion+consumers as a result of Average Purchasing Power per capita. 5 2 the country’s free trade agreements. 0 Panama Costa Rica Honduras El Salvador Guatamela Nicaragua Belize Manzanillo Intl. World class infrastructure where two oceans meet Terminal and Colon Free Logistic Park Trade Zone

Overall infrastructure quality, rating 1-7*, selected Latin America countries, Colon Container Panama Colon 2015-16 weighted average st Terminal Highway 1 5

4.7 4.5 3rd Bridge over 4 4.1 The Panama Canal Tocumen 3.7 Intl. Airport 3.6 3.5 3.5 In Latin America For quality of air 3 3.2 3.2 3.1 3.0 3.0 for the overall transport infrastructure City of Knowledge quality of in Latin America & infrastructure

Rating (1-7) 2 Agua Clara Locks Expanded Canal

1

0 In the Americas In Latin America PAN CHL MEX HON GTM SLV DOM NIC CR ARG COL BRA for quality of port on the World Panama Canal infrastructure (5th Bank’s Logistic Interoceanic Railroad Source: Global Competitiveness Report, World Economic Forum, Switzerland, 2016-17 * Assessment of the quality of general infrastructure (e.g., transport, telephony, and energy) in the country (1= extremely Source: Global Competitiveness Report, World Economic Forum, underdeveloped; 7= extensive and by international standards) Switzerland, 2016-17 Port of Balboa

PSA - Panama Intl. Terminal

Cocoli Locks 4th Bridge over Expanded Canal The Panama Canal

Panama Metro Panama Pacifico System Special Economic Zone

80 KM OCEAN TO OCEAN 48 MILES OCEAN TO OCEAN The newly expanded Panama Canal is a game changer, transforming global trade and international maritime routes. Photo courtesy of the Panama Canal Authority

$8bn 85% $10bn $5.4bn Triple container capacity Panamanian economy generated US$10 billion in direct The total cost of the expansion. Building the new locks allows for Neo-Panamax ships to transverse the Canal, wich have a capacity will reduce global maritime shipping Canal, by 144 maritime routes, income sience 2000 and this is expected to increase in the nearly three times that of Panamax ships. costs by US$8 billion a year. reaching 1,700 ports. coming years as a result of the expansion. Competitive operational costs

Panama is highly cost competitive within the Latin America & Caribbean region with the country being between 3% and 59% cheaper than in Panama City are up to 70% cheaper than major global city competitors. DHL has been present in Panama for over three Skilled-service based employee annual labor cost* (US$), decades and currently employs more than 1,500 selected countries, 2015* and Latin American cities, Q2 2016 people. Panama’s excellent connectivity as well as it’s strategic location are key factors 100,000 1,000 943 behind DHL’s ongoing investment. 889 - Kendall Vasquez, 80,000 800 Head of Marketing & Sales, Global Forwarding annum) ost (US$) Panama & Caribbean 60,000 600 540 m2 / 524 423 40,000 400 388 Annual labor c 344 261 ental Costs (US$ / 249 20,000 R 200

0 0 PAN CRI DOM ARG TTO MEX JAM CHN COL BRA CAN SGP NLD DEU USA Panama Bogota Buenos Mexico Los Sao Miami Rio de New York Aires City Angeles Paulo Janeiro City

Source: fDi Benchmark (www.fdibenchmark.com) *Salary + employer statutory social security contributions Source: fDi Intelligence based on Cushman &

In terms of output, each worker in Panama is 44% In Latin America for the number of persons more productive than the average worker in Costa employed in occupations with tertiary education 44% 2nd requirements as a percentage of the total number than any other Central American country. Investment Opportunities es gy vi c ourism ogistics T acturing e D ev elopment enewable Ene r ed Manu f R Multimodal L an c HQ Business Se r astructu r Ad v Inf r 560-0687