The Panamanian economy has experienced a period of unprecedented growth with a noteworthy increase in the establishment of foreign businesses and investors looking for local opportunities. The approval of the expansion of the Panama Canal at a cost of approximately $5.25 billion and other mega infrastructure projects, such as the proposed underground metro transportation system, have contributed to this positive increase. Major multinational companies such as Procter & Gamble, Caterpillar, AES, Halliburton, LG, Hewlett-Packard, and 3M have also established regional offices or headquarters in Panama. As a result, while the international financial crisis caused many regional economies to shrink during 2008 and 2009, Panama experienced a gross domestic product (GDP) growth rate of approximately 2.4% for 2009, compared to 8% in 2008. The GDP growth rate for 2010 is expected to be around 4.5% to 5.5%.
It is no coincidence then that towards the latter half of...