Modern legislation, a tax system that benefits investors and use of the dollar as circulating currency are just some of the characteristics that Panama has and which could lay the groundwork for even greater market development, which would position the country as a "hub " for securities in Latin America.
Additionally, the investment plan proposed by the government, mainly related to the expansion of the canal, plus the fact that they have the second largest free zone in the world, also helps pave the way for further increases in national economic development.
However, at stock market level, much remains to be done in order to reach the potential that lies below the surface of a banking system which has a few entities, is shallow and which hampers development.
In his opinion piece, published in americaeconomia.com, Santiago Fernández Castro, said: "Part of the challenge then is to get an overview of all stock market participants, including the regulator, issuers, brokers and investment advisers, in order to make the Securities Hub of the Americas a reality.
This is a great opportunity and a cure for myopia which today is not allowing us to envision what we surmise would be the massive participation of local and foreign customers buying securities in USD or even in their local currencies. "
Source: americaeconomia.com
More on this topic
November 2011
"Panama is still one of the fastest growing countries in the Americas."
A mission from the International Monetary Fund (IMF), led by Corinne Delechat, visited Panama from 7 to November 18 to conduct the annual Article IV Consultation (1). At the end of the discussion, Ms. Delechat issued the following statement in Panama City:
May 2010
On March 2010, Fitch Ratings raised Panama’s long-term foreign currency and local currency Issuer Default Ratings (IDRs) to 'BBB-' from 'BB+'.
The upgrades reflect a sustained improvement in public finances, underpinned by recent tax reforms, and the economy's resilience to the global financial crisis and associated recession.
March 2012
Macroconomic stability and policies of greater social inclusion have reduced unemployment rates to historical levels and improved poverty levels.
A press release issued by the IMF on March 16th, 2012, says:
IMF Executive Board Concludes 2011 Article IV Consultation with Panama
March 2009
The risk rating company, Fitch Ratings, predicts that Guatemala's economy will grow by 1% in 2009.
If the forecast by Fitch is accurate, economic growth would be the lowest since 1986. In a report, the rating firm indicates that "the effects will be felt in trade, finance, investment and remittances."
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