Moderators Moderator_03 Posted October 5, 2022 Moderators Share Posted October 5, 2022 Quote Government sabotaging foreign investment – Business Chamber Posted 02/10/2022 Panama’s Chamber of Commerce, Industries, and Agriculture claims that the arrival of foreign direct investment (FDI), is a result of the loss of confidence due to the interventionism of the State and the overreaching of officials. "Today, the opinion is growing that doing business in Panama is increasingly impacted by bureaucracy, government discretion and regulations without technical support," said the president of the union, Marcela Galindo in the regular Sunday newsletter. Entrepreneurs have spoken out against a maximum gross marketing margin for some products, such as food, personal hygiene and cleaning items, as part of the decisions of the so-called single dialogue table that the Executive has with social groups, and in which the private sector did not participate. The Chamber emphasized that the current climate for doing business is leading national and international entrepreneurs to abandon the idea of making new investments or, worse still, reduce or relocate their operations. The flow of FDI recovered in the first quarter of the year, amid a general improvement in activity, after a stoppage caused by the coronavirus pandemic. However, it is not enough to return to pre-pandemic FDI levels. Between January and March, the investment flow to the country was $716.1 million, a figure that represents an increase of 203.3% when compared to the $236.1 million for the same period of the previous year. But the figures fall short when compared to the first quarters of 2019 and 2020 when FDI flow was $1.128 billion and $1.028, billion respectively. “At a time when the country needs to generate as many jobs as possible, thousands of jobs are put at risk as a result of uncertainties generated by actions or inactions of national authorities. An obvious symptom of this is the tendency to transfer activities of the private sector to the State, with the sole result of worsening the problem that it is proposed to solve,” Galindo said. https://www.newsroompanama.com/business/government-sabotaging-foreign-investment-business-chamber Quote Link to comment Share on other sites More sharing options...
Moderators Moderator_03 Posted October 5, 2022 Moderators Share Posted October 5, 2022 Quote Fitch maintains Panama rating but warns of social unrest Posted 04/10/2022 The risk rating agency Fitch has reaffirmed Panama's sovereign rating at BBB- with a stable outlook, maintaining the country's investment grade. The agency based its decision on the country's high per capita income, a record of strong macroeconomic performance with high growth rates and relatively low inflation. However, Fitch warns that the country remains susceptible to the external environment due to its dependence on international financing. Likewise, the agency maintains that the government's revenue base is relatively narrow, coupled with an uneven track record of meeting fiscal consolidation goals. In updating the sovereign rating, Fitch notes that the protests last July revealed discontent with social concerns, including poverty, inequality, and levels of corruption. This last point significantly offsets the points in favor of the country, said the rating agency. "Social unrest may have fiscal implications beyond this year, as it could increase social spending pressures," the agency says. Regarding growth prospects, Fitch points to 9%, which exceeds the Government's estimate of around 6%. Growth, according to the firm, will stand at 4.5% in 2023, down from the previous projection of 5%. "Risks are increasingly on the downside as a mild recession is expected in the United States in mid-2023, in addition to an adverse global economic scenario," the firm notes. In its analysis, the agency considers that the inclusion of Panama in the gray list of the Financial Action Task Force has not had material negative economic effects, and hopes that it will continue to do so, although getting off the list remains a key legislative challenge and is an important component of the country's politics. https://www.newsroompanama.com/business/fitch-maintains-panama-rating-but-warns-of-social-unrest Quote Link to comment Share on other sites More sharing options...
Moderators Moderator_03 Posted October 5, 2022 Moderators Share Posted October 5, 2022 Quote Panama will stay on EU’S Dirty Dozen tax haven black list Posted 05/10/2022 The European Union (EU) will keep Panama on its discriminatory list of tax havens for another six months as the country has not complied with international criteria on transparency and exchange of tax information, and for having a system of exemption of income from abroad considered harmful. Panama, has committed to comply with the recommendations of the framework against the erosion of the tax base of the Organization for Economic Co-operation and Development (OECD) with regard to country-by-country declarations by multinationals in time for the fall 2023 review. American Samoa, Fiji, Guam, Palau, Samoa, Trinidad and Tobago, the US Virgin Islands, Vanuatu, Anguilla, the Bahamas and the Turks Islands make up the list of 12 jurisdictions that do not cooperate in tax matters. The list includes jurisdictions from around the world that have not engaged in a constructive dialogue with the EU on tax governance or have failed to meet their commitments to implement the necessary reforms to meet a set of objective criteria of good tax governance. InclusionPanama was included in the first version of the "black" list of tax havens published in 2017 as a result of the lack of understanding of the country's tax regimes, but during 2018 it became "grey" and managed to get out after the EU recognized that the Panamanian State was dedicated to completing the necessary legislative reforms to adapt the preferential regimes considered pernicious. Subsequently, in February 2020, the EU included it again, considering that the country had not yet complied with "the fiscal reforms to which it had committed" with the 27. Its permanence on the list continued in 2021 to date. The Government has argued that all the recommended measures given by the OECD to improve fiscal transparency have been applied. The EU says it cannot remove Panama from the blacklist "if first" the Financial Action Task Force (FATF) does not do so. The EU list of non-cooperative jurisdictions for tax purposes forms part of the EU's external tax strategy and aims to contribute to ongoing efforts to promote good tax governance across the world. Jurisdictions are evaluated based on a set of criteria established by the Council. designed to prevent base erosion and profit shifting. The next revision is scheduled for February 2023 https://www.newsroompanama.com/business/panama-will-stay-on-eus-dirty-dozen-tax-haven-black-list Quote Link to comment Share on other sites More sharing options...
Moderators Moderator_03 Posted October 15, 2022 Moderators Share Posted October 15, 2022 Quote New job contracts 41% below pre-pandemic Most of the new contracts are forma defined time or a specific project. Posted 14/10/2022 From January to August of this year, 157,583 contracts have been registered in the Ministry of Labor and Labor Development (Mitradel). The figure represents an improvement over the pattern during the first quarter, but the figures indicate that the country is 41% below the pre-pandemic results reports La Prensa. The eighth month of 2022 reflects that the downward trend was maintained throughout the year when the records are compared with the last period before the economic crisis caused by the restrictions imposed to contain covid-19. In the same period of 2019, 26,223 contracts were achieved, while in 2018 there were 294,622 work agreements. The contracts registered in the Mitradel cannot be interpreted in their entirety as new jobs generated in the private sector, since a new contract can follow a dismissal or resignation. The records show the natural rotation of the market and also measure the temperature of what is happening, by area, economic sector, and type of labor agreement. The country is not only generating 41% fewer formal jobs, but it also has five times more informal jobs than before the pandemic. Business consultant René Quevedo said that according to information from the National Institute of Statistics and Census, the economy is adding at least 10,000 new informal workers per month, five times more than the average for the 2009-2019 decade. This explains the decrease in unemployment, which went from 11.3% in October 2021 to 9.9% in April 2022. Basically, informal workers and civil servants increased, accounting for 71% of the expansion of employment between October 2021 and April 2022, but the trend of job insecurity continues, indicated by the World Labor Organization, as the main threat to the IVM Program (Disability, Old Age and Death). https://www.newsroompanama.com/news/new-job-contracts-41-below-pre-pandemic Quote Link to comment Share on other sites More sharing options...
Moderators Moderator_03 Posted October 21, 2022 Moderators Share Posted October 21, 2022 Quote 256 cruise ship reservations provide a boost to the economy Posted 20/10/2022 Some 256 cruise reservations have been registered that will carry out operations in the different port terminals of the country, reports the Panama Maritime Authority (AMP)as the cruise industry, moves to recover from the measures adopted during the covid-19 pandemic. On the Atlantic side, the 2022-2023 cruise season began last Sunday, October 16, with the arrival of the MSC Divina at the Colón 2000 port, from Cartagena, Colombia. In the Pacific sector, the arrival of the World Navigator cruise ship, of the shipping company Mystic Cruises, is expected at the Amador terminal on Saturday, October 29. One of the main attractions for cruise passengers is the passage through the Panama Canal, which would be complemented by tours of Gatun Lake and other tourist sites in the country. For the Panama cruise terminal, there are 52 reservations, of which 22 are base port ( home port ) those in which there is a rotation or change of passengers, embarkation, and disembarkation. The remaining 30 passenger ships for that terminal are a port of call or those in which passengers disembark for tours, excursions, shopping and return to the cruise. The arrival of ships from the companies Royal Caribbean, Carnival Cruises, MSC Cruises, Norwegian Cruises and Celebrity Cruises is expected on the calendar. With the 256 reservations, an approximate volume of 75,233 passengers and 40,529 crew members will be handled, according to the AMP. Among the vessels, there are ships that carry from 200 travelers to 4,000 passengers and from 100 to 1,800 crew members. Job opportunities The start of the cruise season boosts the economy directly by producing income for local businesses and new job opportunities are generated in the regions that are visited. In the case of the province of Colón, it is expected to boost the economy of that province through traditional tourism, shopping tourism, and consumption in micro, small and medium businesses. Likewise, through the special Colón Free Port system that encourages duty-free retail purchases in the 16 streets of the city of Colón. https://www.newsroompanama.com/business/256-cruise-ship-reservations-provide-a-boost-to-the-economy-1 Quote Link to comment Share on other sites More sharing options...
Moderators Moderator_03 Posted October 22, 2022 Moderators Share Posted October 22, 2022 Quote Panama remains on money-laundering gray list Posted 21/10/2022 Panama continues on the gray list of the Financial Action Task Force (FATF) of countries with deficiencies in the fight against money laundering. The information was released Friday, October 21, by the president of the FATF, after a plenary session held in Paris, where the exit from the gray list of Nicaragua and Pakistan was also announced after correcting the failures that were detected. After learning of the agency's decision, the Ministry of Economy and Finance (MEF) said in a statement that Panama obtained a rating upgrade, which allows progress in the FATF Action Plan. The Vice Minister of Finance, Jorge Luis Almengor, and the Vice Minister of Foreign Affairs, Marta Gordón, reiterated the commitment, to comply with the action plan and strengthen the money laundering prevention system. On the three pending actions to comply with the 15 established by FATF, the MEF indicates that significant progress was made, which resulted in the sub-actions to be fulfilled being substantially reduced. According to the MEF, Panama should focus on completing the effective implementation of the Single Registry of Final Beneficiaries, a complementary mechanism that the country adopted to guarantee that resident agents have available updated and verified information on the final beneficiary of Panamanian legal entities. Of the action related to investigations of money laundering that has foreign tax crimes as a precedent, sufficient evidence of effectiveness was provided in each of the three sub-points that make up this action, said the MEF Fellow travelers Along with Panama, Albania, Barbados, Burkina Faso, Cambodia, Cayman Islands, Gibraltar, Haiti, Jamaica, Jordan, Mali, Morocco, the Philippines, Senegal, South Sudan, Syria, Turkey, Uganda, and the United Arab Emirates continue on the gray list. In June 2019, Panama was included in the FATF gray list and the administration of President Laurentino Cortizo, who had just won the presidential elections, made a commitment to comply with the action plan established by the multilateral organization. Since then, progress has been made, but there are still pending issues to comply with and get out of the gray list. https://www.newsroompanama.com/news/panama-remains-on-money-laundering-gray-list-2 Quote Link to comment Share on other sites More sharing options...
Moderators Moderator_03 Posted October 23, 2022 Moderators Share Posted October 23, 2022 Quote New car sales on the rise – 5000 in October Posted 22/10/2022 New car sales will exceed 5,000 units in the month of October, boosted by sales at the ‘October Motor Fest ‘organized by the Association of Car Dealers of Panama (Adap). Bogdan Batinovich, president of the automotive union, said that generally, the fairs organized by Adap have an impact of more than 40% on the monthly sales of new cars. Monthly, sales this year exceeded 3 000 units, except for January and July when they were 2,000 and 600, respectively. Over 13,000 people attended, attended the Fest when Adap's projection was close to 12,000. The demand for new cars remains on the rise, but distributors do not have the inventory to satisfy demand as worldwide car assembly plants continue to face problems in speeding up production due to the shortage of microchips and semiconductors. Figures from the Comptroller General's Office up to the month of August show that 26,370 units were sold in the country, leaving a positive balance of 6.6% against the accumulated figure for the same period last year. Batinovich indicates that Adap's projection is that by the end of the year sales of new cars will oscillate between 41,000 and 42,000 units, and explains that the international situation that car manufacturers are going through, as well as the protests registered last July, will affect total sales in 2022. In 2019, more than 47,000 units were sold in the country, while in 2020, when local distributors were closed by the pandemic, 24,091 units were sold. For next year, ADAP looks forward to holding the four fairs that it held annually until the pandemic was declared. https://www.newsroompanama.com/business/new-car-sales-on-the-rise-5000-in-october Quote Link to comment Share on other sites More sharing options...
Moderators Moderator_03 Posted October 29, 2022 Moderators Share Posted October 29, 2022 Quote Panama’s tourism generated $1.2 billion as of September 2022 By Adrian Prozzo on October 28, 2022 in News from Panama The Panama Tourism Promotion Fund (PROMTUR) for the marketing and international promotion of the isthmus, from January to September 2022, stands at US $1.2 billion, according to information from the Destination Marketing Organization (DMO). Of the US$1.2 billion, a total of US$178.5 million corresponds to the results of the marketing strategy of the tourism brand “Panama, Vive por Más”; US$ 968.1 million to the performance of strategic alliances for marketing and the joint promotion of the destination in key markets and US$58.3 million to the results of the DMO Incentive Plan and its International Event Capture Program for Fernando Fondevila, (general director) of the Panama Tourism Promotion Fund (PROMTUR), said that the figure presented exceeds by 8% the target that was planned for this period, initially stipulated at US$1.110 million. In turn, he stressed that the country continues with positioning efforts to keep Panama in the sights of international travelers and generate demand for visitors to the destination, through various strategic alliances, such as the shared promotion agreement signed with the airline Air France, focused on attracting tourists from the markets of France and Germany. PROMTUR Panama has finalized 16 strategic alliances with airlines, global tourism operators and online travel agencies, and by the end of the year, it is planned to add 4 more alliances to total 20 strategic alliances aimed at capitalizing opportunities in the markets of the United States, Colombia, Brazil, Canada, Costa Rica, Argentina, Spain, France and Germany. https://panamaadvisoryinternationalgroup.com/blog/news-from-panama/panamas-tourism-generated-1-2-billion-september-2022/ Quote Link to comment Share on other sites More sharing options...
Moderators Moderator_03 Posted November 4, 2022 Moderators Share Posted November 4, 2022 Quote Moody’s lowers its outlook for Panama Posted 03/11/2022 The three main rating agencies - S&P Global, Fitch, and Moody's - have published their ratings for the current year, with two of them maintaining a negative outlook for the payment capacity of the Government of Panama. While S&P Global had already issued its negative outlook last year, Moody's —decided to lower its outlook this year. In its most recent report, Moody's confirmed its Baa2 rating on Panama's public debt, corresponding to the country's BBB rating from S&P Global and one notch or level above the BBB- rating held by the nation with Fitch Ratings. But Moody's believes it may soon be able to put its rating on par with Fitch's. As a reason for its negative outlook, Moody's explains that its decision " reflects an increase in fiscal pressures arising from a rigid [public] spending structure related to an upward trend in wages, subsidies, and interest payments ." Such spending rigidity refers, in part, to the greater use of the national debt to finance the payment of the public payroll, in addition to the transfers that the National Treasury must make to maintain the financial viability of the Disability, Old Age, and Death Fund (CSS). This fund, according to calculations by the International Labor Organization, will need contributions of over $2 billion by the end of the decade in order to continue paying the pensioners who contributed. Weak policies According to the rating agency, “ the lack of progress in the reform of the pension system […] represents a weak effectivenes] public policies, an element related to governance within Moody's analytical scheme. Although Panama's economic growth prospects remain favorable relative to its peers, Moody's expects] gross domestic product growth in the coming years to be lower than before the pandemic, and, the inability to address fiscal pressures would prevent an improvement in the country's debt metrics. Similar to other agencies, Moody's expects the ratio between public debt and gross domestic product (GDP) to decline and fluctuate around 60% in the medium term, after reaching levels not seen since before 2005, approaching 70% in the face of the pandemic. For reference, Costa Rica has a public debt of $44 billion, equivalent to 70% of its GDP, while Colombia has a public debt of $175 million, equivalent to 65% of its GDP. In Panama, the public debt is around $43 billion. The first thing, in this case, to maintain good credit, is haste. “ The deficit reduction process, ” Moody's says, “will become increasingly complicated due to mounting spending pressures and the increasing likelihood that the central government will have to “ provide financial support for social security ”. Spending rigidity The second is the spending rigidity mentioned earlier. “ Relative to its Latin American and investment-grade peers, Panama had a relatively flexible spending structure, with investments accounting for 37% of central government spending between 2010 and 2019. This feature provided budget flexibility, giving authorities the ability to under-execute capital spending to meet fiscal targets”. However, this changed. The proportion of investment "declined to 26% of total expenditure for 2021, while current spending increased, with payroll disbursements, subsidies and interest constantly increasing ." https://www.newsroompanama.com/business/moodys-lowers-its-outlook-for-panama Quote Link to comment Share on other sites More sharing options...
Moderators Moderator_03 Posted November 9, 2022 Moderators Share Posted November 9, 2022 Quote Panama's booming public hiring costs billions Posted 07/11/2022 In July 2022, the number of public servants on the state payroll amounted to 255,184 officials with a monthly salary expense of $412 million. The accumulated expenditure on wages in these first seven months of 2022 amounts to $2.814 billion reports La Prensa. The institutions that registered the greatest growth in civil servants in July were the Ministry of Education, with 1,848; the Ministry of Health, with 1,520; the Ministry of Public Security, with 864; the Comptroller General of the Republic, with 465; the Tocumen S.A. International Airport, with 358; the Ministry of Agricultural Development, with 294; the Judicial Branch, with 262; the Savings Bank, with 190; the Technological University of Panama, with 178; the University of Panama, with 165; the Maritime Authority, with 147; the Fire Department, with 113; and the Specialized University of the Americas, with 109. Compared to June, in July there was a decrease of 1,526 officials. In the National Assembly, 3,919 (which could be temporary contracts); in the Social Security Fund, 164; and in the Empresa de Mercados Nacionales de Cadena de Frío, S.A., 62. The growth of the state payroll in number of people and spending on salaries has had an upward trend in recent administrations. Although the increase in spending has to do in part with special laws approved by different governments, the statistics also show an increase in the number of public servants. During the administration of President Juan Carlos Varela, the payroll grew by about 31,000 officials between July 2014, when it began, and June 2019, when it ended. The monthly expense in salaries in that five-year period also rose on average by $140.8 million. After the protests last July, due to the high cost of living and corruption, the Executive announced austerity measures whose results are unknown. It was reported that the Cabinet on July 12 approved the establishment of a 10% reduction process in the state payroll, the start of a voluntary retirement program for public sector employees, and the suspension of salary increases, except those established by law, among others. Moody's rating High state spending was one of the issues to be considered by Moody's to change Panama's outlook from stable to negative while affirming the Baa2 senior unsecured debt and long-term issuer ratings. The rating agency highlighted that since 2017, Panama's capital spending has been reduced to control general spending. The share of capital spending was reduced to 26% of total spending (5.1% of gross domestic product) by 2021, while current spending increased with disbursements in salaries, transfers or subsidies, and debt interest https://www.newsroompanama.com/news/panama039s-booming-public-hiring-costs-billions-1 Quote Link to comment Share on other sites More sharing options...
Moderators Moderator_03 Posted November 9, 2022 Moderators Share Posted November 9, 2022 Quote Panama anticipates $10 million tourism revenue Posted 08/11/2022 With the start of the new cruise season and the arrival of flights from Canada, Panama seeks to reactivate not only its attractions but also the tourism sector in general after the crisis generated throughout the world due to the Covid pandemic. Iván Skildsen, Minister of Tourism, highlighted that it is estimated that the economic impact generated by this cruise season, which runs from October to May, will be approximately $10 million. In Puerto Colón 2000, plans have been prepared for the issue of security in the surroundings of the area, so that tourists can enjoy the tourist attractions and that economic income is generated in the province. Another of the strategies to attract tourists is the preparation of Taboga Island. Likewise, they prepare the Gamboa area, so that visitors do not only concentrate in the capital. During the cruise season, from October to May, it is estimated that approximately 44 cruise ships will arrive in Panama, with an average of 2,000 to 3,000 passengers per ship. https://www.newsroompanama.com/business/panama-anticipates-10-million-tourism-revenue Quote Link to comment Share on other sites More sharing options...
Moderators Moderator_03 Posted November 25, 2022 Moderators Share Posted November 25, 2022 Quote Venezuelans in Panama have invested $1.8 billion Posted 24/11/2022 The 144,000 members of the Venezuelan community in Panama have invested $1.8 billion in the country says a"Study on the economic impact of Venezuelan migration in Panama. It was prepared by the Chamber of Venezuelan Entrepreneurs and Executives Abroad (Cavex), the International Organization for Migration and the International Agency for Swedish Cooperation and Development, and released Wednesday. Its aim is to break with the myth that Venezuelans are a burden to the State, and, to persuade the Panamanian authorities to achieve more agile migration channels that can boost investment, create jobs and contribute to the economy. Venezuelans believe the immigration policy used by the government is simplistic and generalized, which becomes an obstacle when opening a company. Orlando Soto, president of Cavex, is ready to sit down and talk with Samira Gozaine, director of Migration, to put the numbers and factors that prevent economic growth in Panama on the table and detail what, according to the results of the study, discourages foreign investment. He believes in the need to establish immigration flexibility that allows transnational companies to expedite visas for specialized and family professions He compares it with other places that have opted for a massive regularization of Venezuelans that allowed their insertion into economic life, such as Colombia, the Dominican Republic, and Peru, where it is possible to pay taxes, create jobs, and contribute to society. "It is to generate expedient ways to give temporary visas to Venezuelans, in a way that is not so expensive, restrictive, and slow," said David Licheri, director of Equilibrium, the company that conducted the survey DISINCENTIVES This type of migratory obstacle, Licheri added, "disincentives new capital interested in investing in Panama because the word spreads, that although tax incentives and the monetary structure benefit investment, immigration policies do not accompany it. In the Ministry of Commerce, there are several sections for different investment processes to which businessmen can apply, which allows the entry of executives to carry out specific tasks. "This can translate into the regularization of a technician, for example, who is granted a transient visa to work," said a source from Migration. A "temporary status for illegals" is being studied. Panama is ahead of its competition due to its economy and financial system, but the other countries in the region are creating ways to facilitate migration, and have changed their immigration conditions because they recognize that it is an unusual phenomenon and requires attention. The study reveals that 49% of Venezuelans in Panama have a higher education that includes undergraduate studies, master's degrees, and doctorates. While 64.7% have technical training. https://www.newsroompanama.com/business/venezuelans-in-panama-have-invested-18-billion Quote Link to comment Share on other sites More sharing options...
Moderators Moderator_03 Posted November 27, 2022 Moderators Share Posted November 27, 2022 Quote Colon Free Zone movement up 45% in first 9 months Posted 25/11/2022 Commercial movement in the Colon Free Zone (ZLC) accelerated in the last quarter of the year. In the first half of 2022, the monthly average of transactions was around $1.7 billion, but as of July, it exceeded $2 billion, while in August it reached $3.73 billion, according to the registry. According to the Comptroller General, in the first 9 months of the year, the free zone registered a movement of $19. 159 billion, an increase of 45% compared to the same period last year. The accumulated amount between January and September exceeds the $13.787 billion period of 2019 by 43%. Continental China, the European Union, Singapore, the United States, and Mexico are the main suppliers of the companies that operate in the ZLC, while Venezuela, Costa Rica, Colombia, Guatemala, the Dominican Republic, and Honduras top the list of destinations that receive from the free zone The sale of electronic products, pharmaceuticals, chemicals, perfumery and cosmetics, clothing in general, common metals and alcoholic beverages remain among the main drivers of growth in the free zone. Severo Sousa, president of the ZLC Users Association, commented that the free zone is improving its commercial operation and is in the recovery phase, however, he acknowledged that even before the pandemic the movement had already declined a lot, " there is still a long way to go." In 2019, the commercial movement in the ZLC closed with a decrease of 10% compared to 2018. https://www.newsroompanama.com/business/colon-free-zone-movement-up-45-in-first-9-months Quote Link to comment Share on other sites More sharing options...
Moderators Moderator_03 Posted December 19, 2022 Moderators Share Posted December 19, 2022 Quote Panama’s GDP up 9.5% in third quarter Posted 18/12/2022 Panama’s Gross Domestic Product (GDP) presented an increase of 9.5% in the third quarter of 2022, compared to the same period of last year, reports the Comptroller General. Comptroller Gerardo Solís said that the pandemic affected the economy for a long period due to the mobility restrictions of the population; coupled with external factors such as the increase in the price of fuel, which led to protests in the country at the beginning of the quarter. The economist, René Bracho said that the recovery of the Panamanian economy continues to consolidate. "The increase in growth in the third quarter demonstrates the fact that key infrastructure projects are being resumed and that household consumption by the end of the year is expanding the country's effective demand," he stressed. While the economist, Gersán Joseph Garzón, stated that there is a tendency to increase, with the help of the economic dynamic. What contributes to this are new constructions, the purchase of new cars, and the purchase of machinery but warns the problem will be the sixth wave covid-19, which can slow down the economy and layoffs at the end of the year. https://www.newsroompanama.com/business/panamas-gdp-up-95-in-third-quarter Quote Link to comment Share on other sites More sharing options...
Moderators Moderator_03 Posted December 31, 2022 Moderators Share Posted December 31, 2022 Quote Study reveals opportunities for Dutch investment in Panama Opportunities for didgital logistics. Posted 27/12/2022 Holland House, the Dutch Chamber of Commerce in Panama, has produced a report for Dutch companies interested in expanding their operations in Panama as a port of entry to Central America and the region. The development of new technological businesses in industries such as maritime, logistics, health, fintech, and government sector operations in Panama is the focus of the study "Digital Tech Sector in Panama, Business Opportunities for Dutch Companies." Remco de Bruijn, author of the study highlighted that Dutch technology investment in Panama increased 29% in 2020 (the last year available), which has been a clear sign that Dutch companies see Panama's potential as a digital hub for the region. “Panama is a small country, but it is big in logistics and banking, two sectors that are crying out for a digital transformation to stay competitive. These are two sectors in which Dutch technology companies can offer next-generation digital solutions,” says De Bruijn, who is managing director of Digitude SA in Panama. He details that the Netherlands is one of the largest investors in Panama. ICT or information technology is the second largest investment sector for Dutch companies and it is growing. Dutch technology companies such as Dutch VR, Elsevier Health, Ibis Management, and WEM are already doing business in Panama. The study sees digital transformation as a key strategy to improve the competitiveness of the Canal and its ports. It points out that the Canal plans to invest $500 million in projects that use new technologies (sensors, artificial intelligence, and virtual and reality augmented reality) to improve efficiency. There is also interest in also supporting ports where there is a need to improve information systems, real-time tracking and tracing, security solutions for ports, green technology, big data and cybersecurity solutions. “Panama has an excellent physical infrastructure with tax and labor incentives to host Dutch technology companies, such as the City of Knowledge Technology Park. From here you can conquer the Panamanian market with high purchasing power. And it can be used as a hub to venture further into other Latin American markets,” highlights de Bruijn https://www.newsroompanama.com/business/study-reveals-opportunities-for-dutch-investment-in-panama Quote Link to comment Share on other sites More sharing options...
Moderators Moderator_03 Posted January 7, 2023 Moderators Share Posted January 7, 2023 Quote Panama tourism bouncing back Posted 04/01/2023 In 2022 more than 1.8 million travelers visited Panama more than double the 800,000 in 2021, when the country began to recover from the pandemic, tourism manager Iván Eskildsen told La Estrella de Panamá. For 2023 the Tourism Authority (ATP) projects a flow of 2 to 2.4 million visitors From January to September 2022, official figures from the Comptroller General the arrival of 1.3 million travelers, which until then represented triple last year for the same date. The entity reported an increase of 117% compared to the same period last. hotel occupancy stood at 54%. Data from the Panamanian Hotel Association (Apatel) reflect a hotel occupancy for the month of September of 51%, while for October it was 52.6% and in November it was 53.3%. Although the data for the month of December will be available in mid-January, experience from other years shows that it is one of the busiest months. Last weekend the Old Town came alive with the number of tourists who participated in New Year's Eve parties, toasted in bars, and ate in restaurants in one of the most touristy areas of the city. The Directorate of Migration recorded up to the month of November 2.4 million entries into the country and 2 million exits. Of this figure, 1.7 million entries and 1.6 million exits correspond to foreigners. Most arrive by air (2.1 million), followed by land (170,000 and sea (73,000) Several hotels improved occupancy in December taking into account that it is the beginning of the best time to visit Panama, the dry season that runs from mid-December to mid-April. Americans lead the list of visitors, followed by Colombians, Costa Ricans, Venezuelans, Ecuadorians, Spaniards, Argentinians, Mexicans, and Brazilians. https://www.newsroompanama.com/business/panama-tourism-bouncing-back Quote Link to comment Share on other sites More sharing options...
Moderators Moderator_03 Posted January 8, 2023 Moderators Share Posted January 8, 2023 Quote Tourism sector remains $700 million in debt Posted 07/01/2023 Preliminary data for the last quarter of 2022 offer a ray of hope for Panamanian tourism, reporting a hotel occupancy of 59% in the capital city and 47% in the rest of the country. The tourisms sector is confident that by the end of 2023 it will be close to the numbers of three years ago, which were not the best but first the sector must face up to the debt with local banks, which exceeds $700 million. On December 31, 2022, the figure of credits modified during the pandemic ceased to exist, for which reason the loans included in this portfolio are now considered regular loans. It will up to each bank to measure the risk of these loans, according to the delinquency registered by the clients, to execute actions such as guarantee procedures. This implies that clients with more than 181 days of arrears in payments will be considered "doubtful" and those with more than 360 days of arrears are "irrecoverable" and, their guarantees will be foreclosed. Raúl Jiménez, president of the Panamanian Association of Hotels (Apatel), commented that of the total debt of tourism companies, about $610 million correspond to hotels. "We must recognize the support that the banking sector gave during the pandemic, by allowing the modification of the terms of the credits, but now we must face this new reality," Jiménez commented. The Panama Tourism Authority (ATP) and the Tourism Promotion Fund had projected the arrival of 1.8 million visitors in 2022. The latest official data is from last September when the arrival of one million 310 thousand visitors was reported in the first nine months of 2022, of which one million 59 thousand were tourists. Jiménez points out that visitors and tourists are not the same. The visitor can stay less than 24 hours in the country, as is the case of cruise ship passengers, while the tourist stays overnight and, therefore, their impact on the economy is greater by consuming more goods and services. “Everyone is welcome, but we must encourage the arrival of more tourists if we want the sector to return to pre-pandemic numbers and achieve a true recovery,” he explained. He adds that, during the first quarter of 2023, the reopening of some of the hotels that closed in the pandemic is expected, everything will depend on whether the demand justifies the investment to open the premises. Hotels such as Melia, in the province of Colón, and others located in the Calidonia sector remain for sale. The president of Apatel states that Panama has many attractions, but it lacks tourist products where the traveler can easily reach, have access to public services and, most importantly, have information in their language. https://www.newsroompanama.com/business/tourism-sector-remains-700-million-in-debt Quote Link to comment Share on other sites More sharing options...
Moderators Moderator_03 Posted January 18, 2023 Moderators Share Posted January 18, 2023 Quote PANAMA Panama's banking area Posted 17/01/2023 Between 2011 and 2021 Panama registered one of the fastest advances in terms of financial deepening in the region, according to the VIII Report on Financial Inclusion of the Latin American Federation of Banks (Felaban) released in December 2022. In the number of deposits with respect to the gross domestic product (GDP), Panama, Bolivia and Colombia are the countries that have grown the most in the last 11 years with increases of 34%, 33% and 23% respectively. In 2011 this indicator was at 91.33% in the country and at the end of 2021 it rose to 107.3%. The report highlights that Panama registers the highest savings collection rate per number of inhabitants at the end of 2021, with $19,643 million per capita in deposits, a growth of 133.76% in 11 years. The balance of current deposits in 2021 in Panama according to Felaban was $85,364 million as a reference for the study, these figures are not deflated by inflation. The Superintendency of Banks (SBP) specifies that at the end of 2021 total deposits climbed to exceed $97 billion above the regional estimate. By November 2022 they reached $98 thousand 848 million. This represents $23,429 in deposits per inhabitant. Felaban points out that Panama is the Latin American country that leads the highest credit portfolio balance weighted by number of inhabitants, with a proportion of $15,700 per inhabitant at the end of 2021, while in 2011 credits were at $7,681 per person. At the end of November of last year, the loan portfolio of the National Banking System in Panama was $58,924 million, an average of $13,966 of loans per inhabitant. Another indicator of financial deepening has to do with the number of credit and debit cards in circulation in the region. It is estimated that at the end of 2021 there were 1,56 million cards, of which 701 million were debit, and 355.4 million credit. Clave debit cards in circulation, an increase of 20.4%, compared to 2021, for a total of 238 million transactions. This increase has been due in part to the participation of international franchises such as Visa and Mastercard, which have also increased their market share. https://www.newsroompanama.com/business/panama-leads-the-region-with-bank-savings-1 Quote Link to comment Share on other sites More sharing options...
Moderators Moderator_03 Posted January 24, 2023 Moderators Share Posted January 24, 2023 Quote Panama bucks recession with increased hiring prospects Posted 23/01/2023 Despite the international recession, employers in Panama reported a "solid hiring pace" for the first quarter of 2023, especially in sectors that demand more education, according to the ManpowerGroup Employment Outlook Survey, published Monday. 58% of the surveyed employers expect to increase their workforce, 13% expect to decrease, 25% do not expect changes and 4% do not know. The survey sample included more than 200 employers throughout the national territory. The net employment expectation is +39%, which represents an increase of one percentage point compared to the previous quarter, and of four percentage points according to the annual comparison. “Our results showed a favorable outlook for Panama in the first quarter of 2023. Although the world is experiencing a recession, the country will maintain a robust economy. In addition, the demand for qualified talent persists in the country despite the global difficulties”, commented the regional manager of Manpower Group for the Caribbean and Central America, Andrés Soto. Sectors The life sciences and health sectors reported the strongest job demand nationally (60%), followed by Communication Services (57%) and Information Technology (IT) (53%). The Manpower report confirms the trend of post-pandemic salaried employment, as well as the increasingly evident relationship between education and job quality," said the labor and business expert, René Quevedo, noting that the greatest hiring expectations are in health, communication, and information technologies, sectors that require more than 14 years of average schooling. According to the National Institute of Statistics and Census (Inec) (October 2021 - April 2022), 85% of new formal jobs require 13 or more years of schooling. https://www.newsroompanama.com/business/panama-bucks-recession-with-increased-hiring-prospects Quote Link to comment Share on other sites More sharing options...
Moderators Moderator_03 Posted February 25, 2023 Moderators Share Posted February 25, 2023 Quote Panama registers interannual inflation of 2.7% AIRFARES climbed 18.6 % in January. Posted 24/02/2023 The Panamanian economy drags an annualized inflation of 2.7% between January 2022 and January 2023, reports the National Institute of Statistics. In one year, the largest increases in the Consumer Price Index (CPI) were registered in housing, water, electricity, and gas with a consumer price index of 11.6%; food and non-alcoholic beverages at 5.3%; restaurants and hotels at 4.6%; alcoholic beverages and tobacco 3.6%; education 3.1%; miscellaneous goods and services 2.6%; furniture, articles for the home and for the ordinary conservation of the home 0.9%; and transportation 0.1%. While the groups that reflected decreases were: health at 2.6%; clothing and footwear 0.6%; communications and recreation and culture, both 0.4%. The inflation of January 2023 with respect to December 2022, registered a variation of 0.9%. The groups that reflected a higher increase at the beginning of the year compared to the end of 2022 were housing, water, electricity, and gas. Only in the case of electricity, consumers registered an increase of 39.6% due to the end of the extraordinary subsidy for the electricity rate because of the covid-19 pandemic. This subsidy is applied to homes with a consumption of up to 300 kilowatts per hour. Airfares up The transport group was more impacted by the rise in air tickets, which rose 18.5% in January of this year. According to the Latin American and Caribbean Air Transport Association, the increase in the price of jet fuel has made this item have a weight of 50% in the cost structure of airlines, when a year ago it represented 36%. The statistical yearbook published by the Economic Commission for Latin America and the Caribbean (Cepal), published this week, reflects that the region as a whole has been pressured by rising inflation and less economic activity. "Along with the slowdown CEPAL indicates that the economies of the region grew last year by almost half of 2021, going from a gross domestic product of 6.7% in 2021 to 3.7% in 2022. https://www.newsroompanama.com/news/panama-registers-interannual-inflation-of-27 Quote Link to comment Share on other sites More sharing options...
Moderators Moderator_03 Posted February 25, 2023 Moderators Share Posted February 25, 2023 Quote Panama will remain on FATF Gray List Posted 24/02/2023 After three days of meetings, the Financial Action Task Force (FATF) based in Paris announced that Panama will remain on the organization’s gray list and expressed its "concern" that Panama did not apply its action plan, which expired in January 2021. Therefore, the FATF “strongly” urged the Panamanian authorities to complete their action plan by June of this year. Otherwise, it will study asking its members and calling on all jurisdictions to apply greater vigilance over business relations and transactions with Panama”, in a message similar to the one issued in the latest evaluations. Panama entered the FATF gray list in June 2019. The Government reacted to the news by stating that "Panama continues to make progress in complying with the Action Plan and is preparing to request an on-site visit ", so that the progress can be corroborated by the representatives of each institution," Panama reiterates the commitment that it maintains at the highest level, to continue strengthening its AML/CFT system [National Anti-Money Laundering and Terrorist Financing System], and to culminate with the country's action plan," remarked the Ministry of Finance (MEF) During the last FATF plenary meeting, Panama obtained a rating upgrade for its action plan. It has fulfilled 13 actions of the 15 that were established by the agency, in June 2019. According to the MEF, of the two actions that remain classified as partially fulfilled, significant progress was made, for which the Joint Group of the Americas of the ICRG [International Country Risk Guide or International Country Risk Guide,] of the FATF, concluded that "despite the technical challenges that Panama has faced to populate the Single Registry of Final Beneficiaries (RUBF), the efforts that the country is making to implement it quickly are recognized." "The challenge to be met by Panama to complete the action plan is to increase the burden of information on legal persons in the RUBF, as well as guarantee that the competent authorities have timely access to the information of beneficial owners," the MEF stated after meeting the FATF decision. https://www.newsroompanama.com/news/panama-will-remain-on-fatf-gray-list Quote Link to comment Share on other sites More sharing options...
Moderators Moderator_03 Posted March 3, 2023 Moderators Share Posted March 3, 2023 Quote ‘pernicious' tax regime keeps Panama on EU black list Posted 28/02/2023 Presenting a "pernicious tax regime" for the exemption of income from foreign sources continues to be the reason why the European Union (EU) decides to keep Panama on its discriminatory list, for the fifth consecutive year. In the conclusions provided in the last update of the list on February 24, 2023, the Council of the EU explained that to date, the country does not have a minimum qualification from the Global Forum on Transparency and Exchange of Information for Tax Purpose The cataloging of a "pernicious tax regime" is a drag issue that comes from 2019, when Panama entered the EU's discriminatory list for the second time. The Council of the EU, throughout this period, has defined that the tax system of the Republic of Panama is "risky and detrimental" to the tax or fiscal base of other countries. Economists and international organizations agree that this classification is due to the "little planning" and "submissive attitude" that the different governments of the country have had to deal with this issue. A fiscal setback For the economist Maribel Gordón, there are several factors to which this situation is attributed. One of them is that the Panamanian tax system, as well as financial and banking institutions "do not meet the conditions" of a process that allows "transparency" and "real control of the resources that enter the country the capital and what is the intention of (these people) when locating in our country." The economist pointed out that "in order for the resources to enter legally, there must be an infrastructure that allows them to favor the Panamanian economy, otherwise, it will only continue to favor some banking and financial corporations. https://www.newsroompanama.com/business/pernicious039-tax-regime-keeps-panama-on-eu-black-list-1 Quote Link to comment Share on other sites More sharing options...
Moderators Moderator_03 Posted March 25, 2023 Moderators Share Posted March 25, 2023 Quote Successful issue of $1.8 billion Panama bonds Posted 22/03/2023 The issuance of two global bonds in the international market with maturities of 2054 and 2035, was carried out by Panama through the Ministry of Economy and Finance (MEF). The first bond for a total amount of $1 billion with a maturity of 2054, and has a coupon and yield of 6.853%. The second bond is due in 2035 for $800 million, with a coupon of 6.40% and a yield of 6.161%. The operation is part of the Financing Strategy of the Ministry of Economy and Finance (MEF) for the General Budget of the State of the fiscal period 2023 and to execute operations of management of liabilities. The entity explained that the financing needs of this year's budget are estimated at $4,153 million and includes $2,178 million for the Central Government's investment program and the rest for debt amortizations. More than $11 billion of the 2023 budget will be for social services Market reaction was positive, with offers totaling more than $9.5 billion and more than 260 investors from North America, Europe, Asia, Latin America, and the Middle East which demonstrates the confidence of foreign investors in Panama. "Considering the great period of uncertainty that is being experienced by the situation of some banks in the United States and the possible rate increases by the United States Federal Reserve (FED) to control inflation, Panama has achieved a favorable issuance which ensures part of the financing of the 2023 Budget given the current market conditions", says a statement from the entity. https://www.newsroompanama.com/business/successful-issue-of-18-billion-panama-bonds Quote Link to comment Share on other sites More sharing options...
Moderators Moderator_03 Posted March 25, 2023 Moderators Share Posted March 25, 2023 Quote Interest rates hike will raise mortgages & car loans Posted 24/03/2023 The US Federal Reserve (Fed) raised interest rates by a quarter of a point on Wednesday and the central banks of the UK, Norway and Switzerland followed suit on Thursday. The logic behind the move is that if the cost of money is increased, consumption is discouraged and a brake is applied to the inflation that is experienced in the US economy. In Panama there is no central bank that prints money, so the Fed's policy has a significant impact on the cost of funds for local banks. "This is a sign that money in the world is going to become more expensive and will continue to become more expensive until inflation turns the corner," said Carlos Berguido, executive president of the Panama Banking Association (ABP). The economist Carlos Araúz recalled that the events of recent weeks in the banking sphere, with the fall of Silicon Valley Bank, had a significant effect on the Fed's position since the unemployment and inflation data pointed to a rise higher than the announced 0.25 points. The rate hike means the cost of borrowing increases. It becomes more expensive to take out a mortgage or a loan to purchase a vehicle. And the same thing happens with the public debt that the country acquires. Araúz says that in Panama there are many immediate and medium-term effects. “Everyone with a mortgage in the non-prime sector or in the commercial sector will receive one or two or more rate hike letters this year, affecting local purchasing power and thus affecting aggregate demand.” With greater interest at the commercial level, everyone's life becomes more expensive, because companies transfer this adjustment to the consumer, practically as if it were a tax, said the economist. So, "the rise in interest affects us all, without exception, directly or indirectly." In terms of public finances, the effect on sovereign debt interest rates has already been seen. The $1.8 billion, bond issue when the interest rate a little over a year ago was around 4.64%, said Araúz translates into almost $39 million more that will be used to pay interest instead of building roads or removing ranch schools,” Araúz said. Credit caution "Rises in rates have created unrealized losses in banks' treasury positions and therefore caution with credit will reign for the remainder of the year," Araúz explained. Since mid-January, the clients of several banks have received the announcement in their emails that the entities will raise the interest rates of their mortgages, credit cards, and personal loans. One point that banks see as positive for Panama is the competitiveness of the market, with more than 42 banks participating in a country of 4 million people. https://www.newsroompanama.com/business/interest-rates-hike-will-raise-mortgages-car-loans Quote Link to comment Share on other sites More sharing options...
Moderators Moderator_03 Posted March 27, 2023 Moderators Share Posted March 27, 2023 Quote Panama’s GDP exceeds pre-pandemic level Posted 26/03/2023 2022 closed with a gross domestic product (GDP) higher than that of 2019. Seen in global terms, the recovery process after the economic collapse of 2020 is complete but the construction, tourism, and manufacturing industries, lag behind, the first two being the sectors that suffered the most during the pandemic. The economist Luis Alberto Morán stated that the low levels of investment explain the results of the construction, with a public budget in which current spending has more weight. In the case of tourism, Morán referred to the scarcity of policies to promote local tourism and the country's brand internationally. The president of the Industrial Union of Panama, Luis Frauca, also pointed to the need for the administration of Laurentino Cortizo to make payments to suppliers in a timely manner and to streamline bureaucratic procedures to boost private investment. At the end of 2022 and after real gross domestic product (GDP) growth of 10.8%, the size of the economy exceeded for the first time the level that existed in 2019, that is, in the last year prior to the pandemic. Measured at buyer's prices, the Panamanian GDP in 2022 was $76,522.5 million, far exceeding the $67,406.7 million of the previous year and the $69,721 million of the GDP of 2019. https://www.newsroompanama.com/business/panamas-gdp-exceeds-pre-pandemic-level Quote Link to comment Share on other sites More sharing options...
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