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Panama stands out as a beacon of economic growth in the region, not just as an international financial hub but also as a highly attractive destination for investment and tourism. Its strategic location, political and economic stability, combined with modern infrastructure, solidify Panama as a crucial center for financial, commercial, and tourist activities.

Economic Performance in 2023

The year 2023 closed with solid performance across various sectors of Panama's economy. Specifically, the International Banking Center (CBI) saw significant improvements in profitability, liquidity, and solvency. This stability reflects robust and efficient economic management.

The new government administration is focused on creating a trustworthy environment to boost investment attraction. Panama continues to be a relevant destination in Latin America, with economic and financial indicators validating its ability to provide high-quality services both domestically and internationally.

Impact of Being Removed from the FATF Grey List

One of Panama's most significant achievements has been its removal from the Financial Action Task Force (FATF) grey list. This advancement has notably enhanced the country’s reputation, attracting new investments and generating interest from European banks and companies looking to establish operations in Panama. This renewed interest also extends to the tourism sector, with an increase in visitors drawn to the country’s natural and cultural attractions.

Future Challenges and Opportunities

Despite a recent downgrade in risk rating by Fitch Ratings, the improved investment-grade rating and removal from the FATF grey list are crucial steps for Panama’s image and reputation. These advances have a direct impact on international perception and financing costs, also benefiting the tourism and commercial sectors.

Commitment to Sustainability

Panama has launched its Sustainable Finance Taxonomy, becoming a pioneer in Central America and one of the first in Latin America and the Caribbean to implement this system. This initiative is designed to facilitate the flow of capital towards sustainable investments, focusing on governance, sustainability, and the environment. The Superintendency of Banks of Panama is collaborating with multilateral organizations on a pilot project to implement this taxonomy in the banking system and other sectors, promoting sustainable economic development.

Outlook for 2024

Early reports for 2024 show positive results across various sectors of Panama’s economy. Financial stability, along with advancements in sustainability and the new administration’s ability to build trust, will be key to maintaining Panama's appeal as a financial and investment destination.

Beyond its role as a financial center, Panama offers a unique blend of investment opportunities, economic stability, and tourist attractions. From its pristine beaches to lush jungles, along with the vibrant urban life in Panama City, the country is a complete destination for both business and pleasure. The strength of its banking system, combined with sustainable initiatives and modern infrastructure, positions Panama as a regional leader, offering a promising future for investors, tourists, and residents alike.

Panama’s future is brimming with opportunities for modernization and expansion, supported by a solid financial base, a favorable regulatory environment, and an unmatched appeal as a tourist and investment destination. With a strong commitment to sustainability and a government administration focused on building trust, Panama stands out as a beacon of opportunities in the region’s economic and financial landscape.

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