Panama: It's Happening Now

Speakers:

• H.E. Ricardo Martinelli, President of Panama
• H.E. Roberto Henriquez, Minister of Industry and Commerce of Panama
• H.E. Demetrio Papadimitriu, Minister of the Presidency of Panama
• H.E. Alberto Vallarino, Minister of Economy and Finance (view a PDF of his presentation)
• H.E. Salomon Shamah, Director of Panama’s Tourism Agency
• José Barrios Ng, Deputy Administrator, Panama Canal Authority
• Alvaro Celis, Gerente General, Multi Country Americas, Microsoft
• Augusto de la Torre, Chief Economist for Latin America, The World Bank (view a PDF of his presentation)
• Pieter Elbers, SVP Network & Alliances, KLM Royal Dutch Airlines
• Laura Frigenti, Director for Central America, The World Bank
• Pedro Heilbron, CEO, Copa Holdings S.A.
• Osvaldo Librizzi, President Latin America, Starwood Hotels and Resorts Worldwide, Inc
• Sergio Martín, Head of Research and Chief Economist Mexico, Global Research, HSBC (view a PDF of his presentation)
• David McCann, Executive Chairman, Fyffes
• Susan Segal, President & CEO, Americas Society and Council of the Americas
• Roberto Sifón Arévalo, Director, Latin America Sovereign Ratings Group, Standard & Poor's (view a PDF of his presentation)
• Hans Toggweiler, CEO, The Americas, DHL Global Forwarding
• Jorge Uribe, President, Latin America, Procter & Gamble

Summary

On March 24, the Americas Society/Council of the Americas hosted its second Latin American Cities Conference in Panama City, entitled “Panama: It’s Happening Now.” The conference was held in collaboration with the Ministry of Industry and Commerce of Panama, the Government of the Republic of Panama, and The World Bank. The event focused on opportunities for investment in logistics, agriculture, and tourism sectors; gave an overview of Panama’s prospects for economic growth; and discussed its future status as a regional hub. Participants included business executives, politicians, academics, and investors from across the hemisphere.

Keynote Speech: President Ricardo Martinelli

President Ricardo Martinelli, the conference’s keynote speaker, invited investors to Panama to take advantage of “Law 41,” which offers multinationals a series of economic, customs, and immigration benefits. He said that investors “would have the backing of our government to invest, with excellent returns for our country.” The president also noted the government’s efforts to improve and modernize the Panamanian education system and the establishment of clear standards for foreign investment and transparency.

Learn more about the president’s remarks and view a clip of his speech below (en español):

Opening Remarks: Minister of the Presidency Demetrio Papadimitriu

Minister of the Presidency Demetrio Papadimitriu opened the conference by expressing the government’s willingness to attract long-term investment in Panama, highlighting that it would significantly contribute to overall growth. He also noted that knowledge spillover is a long-term effect of foreign investment.

View a video of Minister Papadimitriu’s remarks (en español):

Logistics and Tourism in Panama

The panels “Tourism: Development Prospects” and “Logistics, Technology, and Panama as a Regional Hub?” stressed the ability of Panama’s tourism industry to lead economic growth and noted the country’s potential to be a regional economic center. When it comes to logistics, Panama ranks fourth in the region and fifty-first on a global scale while ranking first in maritime connectivity. The government, which will establish a Ministry of Security to address transnational crime issues, is also expanding road and airport networks. Panama will expand is tourism industry to expand ecotourism and views travelers as "future investors." Minister of Industry and Commerce Roberto Henríquez emphasized that, in addition to the Panama Canal, the country has become an aerial hub for more than 51 destinations through its domestic airline, Copa Airlines.

Economic Outlook: Panama and Latin America

The conference’s speakers provided an overview of both Panama and Latin America’s economic outlook. Minister Henriquez noted that Panama has its arms open to receive investors. During his presentation, Minister of Economy and Finance Alberto Vallarino underscored Panama’s strong economic growth in the past five years and the country’s resilience in the face of the 2009 global financial crisis. He drew attention to recent economic policies undertaken by the Martinelli administration, such as increasing tax revenue and reducing fiscal deficits. Moreover, Vallarino said investment in human capital through education, training, and social inclusion will serve as the backbone of the 2010-2014 government plan.

HSBC’s Sergio Martin noted that Panama had fared well through the financial crisis, considering it grew by 2.4 percent in 2009. He noted that forecasted growth for this year was on the upside at around 4 percent. In conclusion, he said the construction of the Panama Canal’s third set of locks starts this year and could add 1 percent to real annual GDP growth. Standard & Poor’s Roberto Sifón Arévalo highlighted Panama’s diversified economy and macroeconomic stability but stressed the country’s need to reduce budget rigidities and expand its tax base, which is among the lowest in the region. 

In an overview of the economic situation in Latin America, The World Bank’s Chief Economist for Latin America Augusto de la Torre said the region was only “bruised” by the recent global economic crisis. However, he noted that the 2009 recession varied significantly across Latin American countries, added 10 million to the ranks of the poor, and spelled job losses of 3.5 million. Nonetheless, the improved monetary policies and reduced currency mismatches enabled countercyclical polices, which will promote an economic recovery in 2010 that may not be uniform but will be fairly generalized and relatively strong.

Learn more about the AS/COA’s 2010 Panama City Conference by accessing an agenda. Also, get information about Panama via our website’s resource section.