– 16 Canadian and United States locations served directly from Panama City including Los Angeles, New York and Toronto.

– 40 Canadian and United States cities are served via connections.

– 81 international destinations directly served in 2016 from Panama City.

– Flight times to Los Angeles are typically under 7 hours while New York can be reached in just over 5 hours of flight time.

– Amsterdam, Frankfurt, Istanbul, London, Madrid, Moscow, Paris and Rome are all served directly or via connections.

– Panama is home to Latin America’s two most active ports – one on each of the Atlantic and Pacific Oceans.

– Around 8% of total world trade passes through the Panama Canal and most locations in the Americas can be reached within 10 days sail.

– Panama and the eastern seaboard of the United States share the same time zone.

– 144 maritime routes to 1700 ports in 160 countries.

– Rated 5th worldwide for quality of port infrastructure.*

*Source: Global Competitiveness Report, World Economic Forum, Switzerland, 2016-17.

– Fastest broadband download speeds in Central America.

– Panama is the continental link of 7

virtually unlimited bandwidth.

– As of 2015, Panama has the lowest

charge of any Central American country.*

*Source: International Telecommunication Union. Information for Belize and El Salvador not available.

Capital : Panama CityArea : 75,517 km2

Population : 4.06 millionGDP : $55.23 billionGDP per capita : $13,514.75

: 0.70%Currency : U.S. DollarLanguages : : English (commercial)Government : Constitutional DemocracyTime Zone : UTC−05:00

Inflation Rate

REPUBLIC OF PANAMA

MARITIME ROUTES

AIR ROUTES

TELECOM CONNECTIVITY

1

2

FDI projects in the country between 2003 and 2016.

260+

Inward FDI flows in Panama totalled US$5.209 billion in 2016.

$5.209bn

Panama receives the most foreign direct investment as a percentage of GDP out of any country in the Latin America & Caribbean region (2015).

9.67%

Panama received more than 43% of all FDI in Central America in 2015.

43% has increased by over 85%

85%

A leading location for foreign direct investment

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

1 FDI is as overseas investment in a new physical project or expansion of an existing project which creates new jobs and capital investment and with majority-ownership by the foreign investor. Mergers and acquisitions (M&A) and other equity investments, along with retail FDI projects, are not included.

2 Up to and including September 2016.

0

2

4

6

8

10

El SalvadorGuatemalaArgentinaMexicoBrazilBelizeColombiaCosta RicaHondurasNicaraguaChilePanama

Inw

ard

FD

I Flo

w a

s a

Pro

po

rtio

n o

f GD

P (%

)

9.67%

8.40%

6.83%5.93%

5.39%

4.13%3.69% 3.65%

2.65%1.99% 1.89% 1.66%

Why have foreign companies invested in Panama?

Source: fDi Markets

Domestic market growth potential

Regulations / business climate

Proximity to markets / customers

Infrastructure / logistics

Industry cluster / critical mass

Other motive

23%

22%

18%

8%

5%

25%Domestic market growth potential

Regulations / business climate

Proximity to markets / customers

Infrastructure / logistics

Industry cluster / critical mass

Other motive

23%

22%

18%

8%

5%

25%in the period 2010-2015.

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

Source: UNCTAD: World Investment Report 2016

2000

3000

4000

5000

6000

2015 201620142013201220112010Inw

ard

FDI fl

ows,

US$

mill

ions

, Pan

ama,

201

0-20

16

2,7233,153 3,211

3,943

4,458 4,494

5,209

North America

Australia

South America

Asia

Europe

Panama is the destination of choice for +135Multinationals investing in Latin AmericaMultinationals under MHQ regime(Law 41 of 2007)

Panama’s key strengths

Panama’s average annual growth rate between 2005 and 2015 was more than double the Latin America & Caribbean average (3.03%).

7.57% Panama has one of the

rates in the Americas – substantially cheaper than the United States, Canada, Mexico and Costa Rica.

25%

Panama has the lowest sales tax in Latin America.

7% Panama has 7 consecutive years of FDI growth.

7yrs

Stable and growing economy

Compound annual average GDP growth rate (%), top 10 Latin American & Caribbean countries, 2017-2021

Source: fDi Intelligence based on International Monetary Fund: World Economic Outlook Database October 2016

0

1

2

3

4

5

6

7

BrazilArgentinaPeruHondurasGuatemalaNicaraguaColombiaCosta RicaDominicanRepublic

Panama

6.13%

4.5%4.16% 4.07% 4.00% 3.87% 3.80%

3.53%

3.01%

1.86%

Strong Financial Services Sector

Source: Global Competitiveness Report, World Economic Forum, Switzerland, 2016-17.

Panama is a business hub for companies worldwide due to its strategic location as well as economic growth in recent years.

President,

Service-oriented economy

12 out of 14 sectors in Panama are showing positive economic growth, including all

Annual GDP growth (%) by sector, Panama, 2015

Source: El Instituto Nacional de Estadística y Censo (INEC)

Real estate, business and rent activities

8.13%

Private healthcare & social services activities

11.59%

Financial services

10.41%Electricity, water and gas supply

13.63%

Mining & Quarrying

6.99%

GDP by sector share (%), Panama, 2015

Construction

14.77%Financial services

7.74%Commerce

17.63%Communications,

storage and transportation

14.31%

Real estate and leasing

8.73%

Source: El Instituto Nacional de Estadística y Censo (INEC)

In Latin America and 2nd in all of the Americas for ease of access to credit (8th globally, improvement of 5 places from 2015-16).

places from 2015-16).

1st

Within the Americas for

(6th globally, improvement of 12 1st

In all of the Americas in terms of

meet business needs (5th worldwide).

1st

Globally for its soundness in banks.11th

Local and international banks operate in Panama, establishing the country as a regional banking hub.94

North America

South America

Asia

Europe

ALADIChile

PeruColombia

Mexico

United States

Trinidad and Tobago

Guatemala Nicaragua

Canada

Cuba Dominican Republic

Costa Rica

El Salvador Honduras

Israel*EFTAEuropean Union

Singapore

South Korea*

*Currently under negotiation

Wide Network of Trade Agreements

Trade agreements.

20Countries reached.

60Access to 1.3 billion+consumers as a result of the country’s free trade agreements.

1.3bnAverage Purchasing Power per capita.

+$29,0000

5

10

15

20

BelizeNicaraguaGuatamelaEl SalvadorHondurasCosta RicaPanama

20

1210 9 9 9

2

Panama has the most trade agreements of any Central American country.

80 KM OCEAN TO OCEAN48 MILES OCEAN TO OCEAN

World class infrastructure where two oceans meet

Overall infrastructure quality, rating 1-7*, selected Latin America countries, 2015-16 weighted average

Colon Container Terminal

Manzanillo Intl. Terminal and Logistic Park

Colon FreeTrade Zone

Panama ColonHighway

TocumenIntl. Airport

Port of Balboa

PSA - PanamaIntl. Terminal

4th Bridge overThe Panama Canal

Panama MetroSystem

Cocoli LocksExpanded Canal

Panama CanalInteroceanic

Railroad

Agua Clara LocksExpanded Canal

3rd Bridge overThe Panama Canal

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 underdeveloped; 7= extensive and by international standards)

0

1

2

3

4

5

BRACOLARGMOD CIN RCSLVLHC XEM NOH MTGPAN

Rat

ing

(1-7

)

4.74.5

4.1

3.7 3.6 3.5 3.53.2 3.2 3.1 3.0 3.0

Source: Global Competitiveness Report, World Economic Forum, Switzerland, 2016-17

In Latin America for the overall quality of infrastructure

For quality of air transport infrastructure in Latin America &

In Latin America on the World Bank’s Logistic

In the Americas for quality of port infrastructure (5th

1st

City of Knowledge

Panama PacificoSpecial Economic Zone

transforming global trade and international maritime routes.The newly expanded Panama Canal is a game changer,

Photo courtesy of the Panama Canal Authority

Triple container capacityPanamanian economy generated US$10 billion in directincome sience 2000 and this is expected to increase in thecoming years as a result of the expansion.

The total cost of the expansion. Building the new locks allows for Neo-Panamax ships to transverse the Canal, wich have a capacitynearly three times that of Panamax ships.

$10bnwill reduce global maritime shipping costs by US$8 billion a year.

$8bn $5.4bnCanal, by 144 maritime routes, reaching 1,700 ports.

85%

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.

Source: fDi Benchmark (www.fdibenchmark.com) *Salary + employer statutory social security contributions

Skilled-service based employee annual labor cost* (US$), selected countries, 2015*

0

20,000

40,000

60,000

80,000

100,000

USADEUNLDSGPCANBRACOLCHNJAMMEXTTOARGDOMCRIPAN

Ann

ual l

abor

cos

t (U

S$)

Source: fDi Intelligence based on Cushman &

and Latin American cities, Q2 2016

0

200

400

600

800

1,000

New York City

Rio de Janeiro

MiamiSao Paulo

Los Angeles

Mexico City

Buenos Aires

BogotaPanama

Rent

al C

osts

(US$

/m2/

annu

m)

249 261344

388423

524 540

889943

In terms of output, each worker in Panama is 44% more productive than the average worker in Costa

than any other Central American country.44% In Latin America for the number of persons

employed in occupations with tertiary education requirements as a percentage of the total number 2nd

DHL has been present in Panama for over three decades and currently employs more than 1,500 people. Panama’s excellent connectivity as

well as it’s strategic location are key factors behind DHL’s ongoing investment.

- Kendall Vasquez, Head of Marketing & Sales,

Global Forwarding

Panama & Caribbean

Investment OpportunitiesH

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