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Although the pace of growth has declined, the Panamanian economy remains the most dynamic in the entire continent.
On average, the projections from diferent sources suggest that in 2014 and 2015 the expansion of gross domestic product (GDP) will be of 7%, well above the average of 1.2% this year in Latin America, according to the World Bank.
The Ministry of Economic Affairs and Competitiveness said yesterday that the second quarter GDP showed a 6.3% increase from the same period of 2013, after reporting a total of $8,657.4 million.
All sectors increased their value in that semester, except for hotels and restaurants; the supply of electricity, gas and water and the agricultural sector.
The fastest growing sector was construction (15.5%), followed by transport and communications (7.7%) and trade (3.3%). All of which are extreamly important for the economy.
For the Executive Secretary of the Secretariat, Michelangelo Esbrí, these figures show that the Panamanian economy "is alive, it is thriving and is not stagnant."
He also stated that foreign direct investment (FDI) in the first half was for $2,575.4 million, 26% more than the previous year. This is a quite surprising figure, and hopefully it will continue to grow as more incentives are provided to foreighn investment.
Yesterday Panama and Colombia come to a middle ground and were given 1 year for the purpose of negotiating an agreement to avoid the issue with double taxation, which can include provisions for sharing financial information from both countries. With a memorandum of understanding between governments settled, issues from the bilateral trade agendas will come to agreements.
The big issue for Panama was the classification as Tax Heaven by the Colombian government and was added to their grey list. After this meeting, President Juan Manuel Santos signed a decree that stipulated the exclusion of Panama from this list, which was a requirement imposed by the Panamanian government to negotiate a tax deal on equal terms and without coercion.
The Vice President of Panama Isabel Saint Malo stated that with these measures of discrimination being removed, they had agreed to an agenda of conversations to fight the money laundering and the financing of terrorism and to stop double taxation. We were signing the decree through which we will remove Panama from the list of tax havens, after they sign a memorandum of understanding where they commit to a date by which to negotiate a deal," President Juan Manuel Santos said.
On the exchange of tax information from the accounts of Colombians in Panama, which is the primary objective of the neighboring country, Saint-Malo said “we are of the opinion that it is in the best interest of our country to explore the feasibility of an agreement to avoid double taxation which guarantees the users of our platform that services will be preserved and Colombian investment is encouraged in our country. "
The withdrawal of Panama from the list of tax havens of Colombia sent a couple of messages to the rest of the world, first, respect for our tax system; second, that Panama will claim the space for dialogue to evaluate alternatives; and third, that we are not willing to negotiate under pressure or to the race. "
For its part, the Government of Colombia said in a statement that the memorandum of understanding is the basis for negotiating a double taxation agreement and will include a clause of financial reporting standards of the Organization for Economic Cooperation and Development (OECD).
Colombia also referred to the agreement to cooperate on money laundering through the Unit of Financial Information and Analysis (FIAU, equivalent of the Financial Analysis Unit) and cooperation with international organizations. "This agreement reinforces that we seek and have established with all neighbors, to cooperate on all issues," said Colombian Foreign Minister.
"It's what we wanted from the start," Santos said. "It's good news for everyone."
With this being settled for now, we can move on knowing that Panama’s reputation is still protected and that even though some countries from around the world want to consider Panama as a tax heaven, it will continue to be what it is and regulations will take place in due time.
The Panama Balboa Port is home to the PPC (Panama Ports Company), which is part of a huge conglomerate named Hutchinson Whampoa, based out of Hong-Kong. This company is ready for a great investment in expansion and renewal of its port and equipment said to take place in 2015, with a budget of $110,000,000.00 Dollars.
Aitor Ibarreche, Hutchison Whampoa's CEO made this announcement and said the investment will boost its capacity by 11% up to 5M TEU ( twenty-foot equivalent unit) by adding loading and unloading spaces. Also the Pacific Port's crane zone with now be wired and using electricity instead of burning fuel, a great plus for saving on the long run.
There is no doubt that this investment and expansion is designed so that the port can be ready for the new locks of the Canal expansion. This project is said to be delivered by early 2016, and so will this expansion. Since the Balboa Port is #45 largest in the world, also Panama's 2nd largest one, it makes sense to improve and justify such an investment.
Business Forum 2014, a unique event to learn about new trends of business in Latin America and the world, but especially for business.
Event under the organization of Chamber of Business, Strong Marketing and Full Media Group, which will feature renowned local and international figures to discuss current issues in business, giving them tools to overcome barriers, meet needs and acquire knowledge for you and your organization.
Within the range of topics and speakers, analysts, commentators and individuals recognized for developing good business, financial business related topics, banking, tourism, services, construction-investment, industry, agriculture, technology, logistics and other related issues will be discussed for the purpose of discussing real issues focused on the implementation of each business.
The dynamics will be established under the figure of a forum, in order to encourage good communication and interaction with the panel and participants.
Do not miss this opportunity where apart from acquiring knowledge and business models, have the opportunity to interact with exhibitors, analysts and business experts. In order to make direct inquiries regarding your business and even to expose their business in minutes, with a view to attract new prospects and organize a business agenda.
For more information: https://www.camaradenegocios.com/es/business-forum-2014
By: The Visitor
On Tuesday, September 30, one of the most remarkable landmarks in Panama -the Biomuseum located on the Amador Causeway- had its official inauguration ceremony. The cocktail gala doubled as a fundraiser and was attended by the country’s elite. As of today, October 2, the museum will be open to the public.
Designed by Frank O. Gehry, named the most important architect of our times by Vanity Fair magazine, its colored roofs and irregular silhouette are intended to be a representation of the natural forces that form the world. Landscape artist Edwina von Gal, and renowned artist, Richard Serra, designed the two hectare botanical park that will surround the main buildings.
The Biomuseum tells the story of Panama’s biological diversity and its importance in the earth’s history. Three million years ago, when the Isthmus of Panama was formed, the course of the world was changed dramatically. The division of the oceans and the ecosystems that consequently appeared due to the ‘Panama effect’ created the important Gulf current, which altered the climate in Africa where early humans had to adapt. Adjusting their lifestyle was crucial for survival, and the most significant change was that mothers carried their young on their backs, giving them the opportunity to develop their brains 50 percent more, an evolution which gradually gave way to Homo Sapiens. Thus, Dr. Steven Stanley, author of “Sons of the Ice Age”, concludes that “we are all Panamanians.”
The Museum will have eight permanent galleries each of which will tell a story that combines art and science to explain scientific concepts.
The Biomuseum is open every day except Tuesdays. For hours and admission costs, visit Biomuseopanama.org or call 830-6700.
Heres a short video we made of the inauguration of the Panama Bio-Museum - Hope you enjoy!
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