Panama Business News

  Fitch Ratings reaffirms Panama's BB+ rating with a stable outlook Fitch Ratings has reaffirmed Panama's BB+ rating with a stable outlook, based on a high Gross Domestic Product (GDP) per capita, low inflation, and macro-financial stability supported by the country's dollarization, as well as solid medium-term growth prospects, focused on logistics activities and the Panama Canal, a key strategic asset for the Panamanian economy. Source: Telemetro MEF reveals that in public finances, Fitch forecasts that the Non-Financial Public Sector (NFPS) deficit will increase to 7.0% of GDP in 2024. However, Fitch points out that the country's positive aspects are offset by several economic challenges, including: Deficiencies in governance and public finances. A narrow and eroded public revenue base. High public debt and a growing interest burden. Reliance on external markets to finance the fiscal deficit. The report also highlights that the administration of President José Raúl M...

  AM Best Affirms Credit Ratings of Chubb Seguros Panama S.A. The ratings reflect Chubb Panama’s strategic importance as a subsidiary of Chubb Limited, which on a consolidated basis has a balance sheet strength that AM Best assesses at the strongest level, as well as its very strong operating performance, favorable business profile and appropriate enterprise risk management (ERM). Source: Business Wire AM Best has affirmed the Financial Strength Rating of A++ (Superior) and the Long-Term Issuer Credit Rating of “aa+” (Superior) of Chubb Seguros Panama S.A. (Chubb Panama) (Panama City, Panama). The outlook of these Credit Ratings (ratings) is stable The rating affirmations reflect Chubb Panama’s integration and support from Chubb Limited, one of the world’s largest insurance groups, which provides synergies and operating efficiencies to the Panama subsidiary. The stable outlooks reflect AM Best’s expectation that Chubb Limited will maintain its strongest balance sheet stre...

  Air Panama acquires two Dash 8-400 aircraft One of the Dash 8-400 aircraft that have joined the air Panama fleet Source: Aviation Business Regional carrier Air Panama has taken delivery of two Dash 8-400 aircraft. The newcomers are the first aircraft of this type on the airline’s fleet and will be deployed on on both domestic and international routes. The aircraft were acquired through aircraft trading firm Jetcraft Commercial. This dealer had in turn acquired   of 19 Dash 8-400s from Alaska Air’s regional subsidiary, Horizon Air. Eduardo Stagg, CEO, Air Panama, said: “Jetcraft Commercial has played a key role in supporting our fleet expansion, allowing us to strengthen our network and meet rising demand. The Dash 8-400’s fuel efficiency and reliability make it a perfect fit for both our domestic and regional operations helping us optimise our services while enhancing the overall passenger experience.” Richard Libby, VP Sales, Jetcraft Commercial, added: “The Das...

  Banco La Hipotecaria is sold to Cuscatlán Centroamérica The purchase-sale agreement is subject to regulatory approval by the Superintendency of Banks of Panama. The amount of the agreed purchase-sale transaction was not specified. Source: EFE The ASSA Group S.A. announced on Tuesday that it has agreed with Inversiones Cuscatlán Centroamérica, S.A. the sale of 100% of the shares of the La Hipotecaria holding company, whose main subsidiaries are Banco La Hipotecaria S.A. in Panama, La Hipotecaria S.A. in El Salvador and La Hipotecaria Compañía de Financiamiento S.A. in Colombia. Inversiones Cuscatlán is a holding company for various banking and insurance businesses in Central America that operate independently. Its companies include Banco Cuscatlán El Salvador, Seguros e Inversiones S.A. (SISA) in El Salvador, Banco Cuscatlán Honduras, Tarjetas Cuscatlán Guatemala and the recent acquisition of Banco Inmobiliario in Guatemala, and currently has a client portfolio of close to 2 milli...

  Panama in the Mirgor Group's plan to become a multinational The Caputo family company already has operations in a dozen countries in the region and its CEO, José Luis Alonso, says that the international division plans to close the year with a turnover of US$250 million, with a focus on the distribution and marketing of mobile phones and electronics, although it is considering venturing into new areas. Source: La Nación The Mirgor Group of Argentina, which received approval to operate under the Multinational Company Headquarters regime, has begun its expansion in Panama. In the last two years, the group undertook its international expansion plan, managing to establish operations in Chile, Uruguay, Paraguay, the Dominican Republic and, now, in Panama. Mirgor has been in the Argentine market for more than 40 years and has begun an international expansion plan that included Panama. The debut abroad took place in 2021 with the inauguration of a first commercial office in Uru...

  Itochu Corporation and Migor Sacifia join the group of more than 180 multinationals that have chosen Panama as the headquarters for their regional operations The two companies that are joining this process of economic expansion are Itochu Corporation, one of the largest business conglomerates in Japan, dedicated to the national and international trade of a wide range of products, including textiles, machinery, metals, minerals, energy and chemical products, and Migor Sacifia, originally from Argentina, specialized in the production of electronic, mobile and automotive components, in addition to exporting agricultural products. Source: Destino Panamá Panama continues to consolidate itself as a key destination for foreign investment with the arrival of two new multinationals, which have received approval from the Commission of Headquarters of Multinational Companies (SEM) to establish their operations in the country. The initial investments of both companies total six million dolla...

  Panama's free zone regime adds new investments for $36.8 million The National Commission of Free Zones approved licenses for three new companies, dedicated to manufacturing activities, processing of finished or semi-finished products and logistics services, which will be established in Panapark Free Zone and Tech Valley, generating joint investments (initial and future) totaling US$ 36,8 million. Source: MICI Once in operation, the three companies will provide more than 180 jobs, both direct and indirect, contributing to the revitalization of the economy of the areas where the free zones are located, in this case the districts of December 24 and Veracruz, in the province of Panama. "The new investments in the free zone regime reflect the growing interest that Panama generates as a logistics and commercial hub. These initiatives will not only create employment opportunities, but will also strengthen our local economy. We will continue working to strengthen this key sector for...

  Net income of Panama Canal   rose to $3.45 billion The third driest year in the canal's history reduced water available to operate, forcing its authority to cut the number of ships authorized to pass per day between late 2023 and early 2024, while limiting their maximum draft allowed. Source: Marianna Parraga / Reuters The Panama Canal's profit increased about 9.5% in the fiscal year ended in September to $3.45 billion despite a severe drought that reduced the number of vessels that passed through the waterway, its authority said on Friday. The restrictions, which caused long delays for some vessels to pass and forced others to seek alternative routes, were removed later this year after rainfall replenished the country's water reservoirs. The waterway handled 423 million tons of cargo through its locks and saw passage of 27.3 ships per day on average, down from about 36 the previous year. But a 5% reduction in operational costs helped ease the financial effect of ...

  DP World Expands Freight Forwarding Network with New Office in Panama New Panama City office boosts global connectivity and delivers tailored end-to-end supply chain solutions. Source: Business Wire DP World, a global leader in logistics and supply chain solutions, announces the opening of its new freight forwarding office in Panama City, Panama. This office is the latest addition to DP World’s growing network in Latin America, further bolstering its capacity to provide seamless, end-to-end supply chain solutions to businesses across the region. The office offers a comprehensive range of freight forwarding services, including ocean freight for both FCL (full container load) and LCL (less container load), air freight, customs clearance, warehousing, multimodal transportation, and insurance facilities. These services, supported by DP World’s global infrastructure, will enable customers to streamline their supply chains, enhance cargo visibility, and improve operational effi...

  Tocumen International Airport in Panama will be granted in concession The Tocumen International Airport will be granted in concession to a private company, as announced by President José Raúl Mulino, in a meeting in Paris with a group of French investors and businessmen. Source: La Estrella de Panamá The president told a group of French businessmen that they will grant the main air terminal in concession, but subject to the concession of other terminals such as David, in Chiriquí, Río Hato in Coclé and Colón. The Panamanian president said that his government is considering granting the Tocumen International Airport, the main air terminal in the country, in concession. But this concession would be in conjunction with the airports of Colón, Río Hato and the city of David, in Chiriquí, indicated the statement from the Presidency. The general manager of Tocumen, S.A., José Antonio Ruiz, said that there has indeed been discussion about the option of giving the country's main airport i...

  IFZA Free Trade Zone is interested in replicating business model in Panama During its meeting with senior IFZA executives, the Ministry of Commerce and Industry of Panama (MICI) was informed of its desire to establish operations in Panama and expand its presence to the level of its activities in Dubai, where it currently manages 45 thousand square meters of offices, occupied by 35 thousand companies that generate approximately 15 thousand direct jobs. IFZA, one of the leading free zones in the United Arab Emirates, has expressed interest in replicating its successful business model in Panama by opening an office under the free zone regime, reported the Vice Minister of Industry and Commerce, Eduardo Arango, after his recent visit to Dubai to participate in the tenth edition of the World Congress of Free Zones 2024. IFZA representatives noted that their interest in Panama is due to the similarities between both places as financial and logistics centers, as well as the country's pr...

  Generadora Gatún Begins Natural Gas Operations in Panama Gatún Generator, a $1.2 billion gas-based project located in the Caribbean of Panama, began commercial operations with the delivery of 440 megawatts to the electrical system and the expectation of not only promoting a reduction in domestic rates in the medium and long term but also of exporting energy to the region. Source: EFE The Gatún Generator project, run by Grupo Energético Gas Panamá, made up of InterEnergy Group (51%) and AES Panamá (49%), was built in 36 months in the Telfers Island sector of the province of Colón, adjacent to the Panamanian capital. Its production capacity is 670 megawatts (MW) using natural gas as a source. “Starting on October 1, we began delivering to the Panamanian electrical system, to the National Dispatch Center (…) around 440 MW” produced by two natural gas turbines, the general manager of the plant, Esteban Barrientos, explained to EFE on Wednesday. A third turbine, steam-powered and with...

Panama is not a tax haven. We will not accept being placed in discriminatory lists.  Mulino before the UNITED NATIONS ORGANIZATION President of Panama, José Raúl Mulino, during his speech at the United Nations.  Source:Charly Triballeau | AFP The president questioned the arbitrary inclusion of the country in various ‘black lists’, despite the significant efforts that have been made to improve its tax system. The president of Panama, José Raúl Mulino, categorically rejected that the country be considered a “tax haven”. In his first speech before the United Nations General Assembly, Mulino defended Panama's reputation and criticized the blacklists that have affected the nation's image, particularly after the "Panama Papers" scandal in 2016. Mulino was emphatic in stating that Panama has been unfairly singled out and that the country has made great efforts to align itself with global standards of transparency. "Panama is not a tax haven or anything like th...

  Collective Hospitality buys SELINA in Panama Selina really had a dream start: it was founded in 2015 by two Israeli friends who were traveling the world and fell in love with the beaches of Pedasí, a small Panamanian town located at the southeastern tip of the Azuero Peninsula on the Pacific. Source: Israel Económico The Collective Hospitality group, which operates mainly in Southeast Asia, announced the acquisition of most of the assets of the Selina hotel chain, thus putting an end to the commercial fairy tale started by two young Israeli travelers in Panama. Daniel Rudasevski and Rafael Museri had arrived in Panama years before, but it was in Pedasí that they decided to apply their entrepreneurial real estate spirit. They traveled to Israel to raise funds, returned to Panamanian soil and bought the land for the first hotel. That first accommodation quickly caused a revolution by combining luxuries typical of high-end boutique hotels with the sense of community experienced in b...

  Prodapt expands in Panama by bolstering Nearshore Center to expand Americas Service Delivery Capability Increased capacity, AI-led solutions to further improve customer experience and operational efficiency for customers Source: Business Wire Prodapt, a leading provider of consulting, engineering and transformation services for the telecom and technology industry, today announced the completion of the first phase of expansion of its nearshore operations center in Panama. The expanded center seats technology and domain experts working with the largest Communications Service Providers (CSPs) across the Americas. “The Panama delivery center is among our most strategic operations facilities worldwide” The expanded center was inaugurated by Pabitra Margherita, India's Minister of State for External Affairs and Textiles, and Dr. Sumit Seth, India's Ambassador to Panama, in the presence of senior executives from Prodapt and leading CSPs in the region. The center continue...

  OCEA GROUP plans to install shipbuilding and maintenance shipyard in Panama The investment will consist of installing a shipbuilding and maintenance shipyard, confirmed the Mici, after the head of this portfolio, Julio Moltó, received a delegation from Ocea, headed by engineer Yorgo Hernández, director for the Americas, and Karin Volot, manager of the subsidiary in Panama, to discuss the project. Source: La Estrella de Panamá International investors continue to be interested in taking advantage of the geographical position and the logistics platform offered by Panama. This Friday, the Ministry of Commerce and Industry (Mici) reported that the shipbuilding company Ocea is interested in investing in this country. In a statement, Mici said that the company's interest in developing the project in Panama "is due to its strategic location on key maritime routes, a system of free trade zones with tax exemptions, and modern infrastructure, in addition to incentives such as t...

  The National Government extends concession to Tigo Panama The National Government decided to extend the concession to the company Telecomunicaciones Digitales S.A., known as Tigo, in this country. Source: La Estrella de Panamá The National Government extended to the company Telecomunicaciones Digitales, S.A. (Tigo, in Panama) the validity of the concession granted to operate the Paid Radio Service, Type B, identified with No. 903, starting on January 18, 2026. For the purposes of this concession, Paid Radio Service Type B is understood to be the sound broadcasting service that consists of the transmission of audio signals, through the use of physical or any other means, which do not require the assignment of main frequencies by the National Authority of Public Services, intended for the reception of a specific public, in exchange for compensation for the service received. Included in this classification are digital or analogue sound broadcasting services via satellite, coaxial ca...

  CORREAGUA S.A. increases its export capacity with high-tech products Exports of Panamanian goods have registered a notable increase in volume and diversity in the last decade, with the main emphasis being on industrial products made with cutting-edge technology, which strengthens Panama's image as an international supplier and improves its competitiveness, said Eric Dormoi, director of Export Promotion of the Ministry of Commerce and Industry (MICI), during his visit to Industrias Correagua, S.A., in Pacora. Source: Ministry of Commerce and Industry (MICI) Dormoi stressed that prefabricated steel structures made in Panama are being used in megaprojects both nationally and internationally, including Correagua's exports. The plant has a significant investment in advanced equipment, such as rotary machines and robotic arms for welding, as well as CNC plasma cutters. “Our figures indicate the growing opportunities for the Panamanian exportable supply with added value at an intern...

  Operationa strategies of the Panama Canal presented at the International Investors Forum During the presentation, Panama Canal Administrator Ricaurte Vásquez Morales shared the strategies implemented and the results achieved in the 2023 - 2024 fiscal year in terms of ship transits and economic revenues from this operation. Source: David Bizley / Dry Bulk The 2025 Investors Forum, organized by the Latin American Stock Exchange (LATINEX), analyzed the economic and operational strategies of the Panama Canal during the months in which the dry season had its highest impact, influenced by the 2023 - 2024 El Niño phenomenon. The presentation titled "Adaptability in Times of Uncertainty," addressed the social and environmental challenges faced by the Panama Canal, as well as short-, medium-, and long-term strategies aimed at ensuring the efficiency and reliability of the route in the international maritime market. Vásquez explained that the strategy of auctioning transit ...

  Panama's economy grew 2.2% in the first half of 2024   The Panamanian economy closed the first half of 2024 with a growth of 2.2%, attributed to the boost of sectors such as construction, land transport, trade, tourism, port services and fishing exports, reported the National Institute of Statistics and Census (INEC).   Source: INEC/Bloomberg   From January to June 2024, the Gross Domestic Product (GDP) reached US$38,645.7 million, that is, a year-on-year increase of US$814.3 million compared to the same period in 2023.   INEC data also highlights that GDP showed an increase of 2.5% in the second quarter of 2024 compared to the same period of the previous year.   The INEC report notes that the construction sector and investment in public infrastructure projects contributed to the dynamism in the first six months of the year.   Likewise, land transport showed positive results, with a 7.9% increase in the number of passengers on the Panama Metro and a ...