Panama has always been a country defined by its geography. A bridge between two vast continents, a gateway where oceans meet, and a hub where global trade converges – its story is one of movement, connection, and opportunity
Today, as the country continues to evolve, it remains a dynamic destination for investment, trade, and tourism, offering strategic advantages for British businesses looking to expand into Latin America.
Resilience
Its macroeconomic landscape reflects a blend of resilience and strategic growth, positioning the nation as a focal point for investors. As of 2025, Panama’s nominal GDP is projected to reach approximately $91.7 billion, with a per capita income of $20,092. The service sector dominates, emphasising Panama’s role as a regional hub for finance, logistics, and commerce.
Investment
The country’s dollarised economy provides stability, with inflation rates expected to remain around two per cent in 2025. There are labour market challenges which the government aims to address through targeted policies and investments. Foreign direct investment remains a key driver of economic growth, with 2023 inflows reaching $2 billion, indicating sustained investors’ confidence. Government efforts to attract and retain investment focus on logistics, energy, technology, and construction.
The financial services industry plays a major role in Panama’s economy. British banks, FinTech firms, and trade finance institutions have opportunities to expand into Panama, particularly as the country modernises its financial sector with digital banking solutions. With an increasingly globalised financial market, Panama’s role as a regional financial hub continues to evolve, hosting 62 banks from 21 countries.
Hub
Logistics and maritime services remain central to Panama’s economy. The expansion of the Panama Canal and free trade zones solidify its position as a transshipment hub for goods moving between Asia, the Americas, and Europe, with movements rising 15 per cent in 2024. Infrastructure projects, including highway and port facility upgrades, further enhance trade efficiency. UK firms specialising in port management, shipping insurance, and supply chain logistics may find opportunities in these sectors.
Infrastructure and engineering continue to attract investment. The expansion of the Panama Metro, particularly the construction of Line 3, is a major transport project aimed at improving connectivity in the capital. The proposed Río Indio reservoir project, designed to secure freshwater supplies for the Panama Canal, also presents opportunities for UK firms in water management and engineering.
Renewable
Panama’s Energy Transition Agenda 2020-2030 supports diversification into solar, wind, and hydroelectric projects, along with growing interest in electric mobility to reduce last-mile emissions. British companies with expertise in renewable energy and sustainability initiatives could contribute as Panama reduces its reliance on fossil fuels.
Tourism is another growing sector, with the government prioritising sustainable tourism and high-end hospitality investments. The country’s landscapes, from rainforests to beaches, attract visitors interested in eco-tourism, cultural heritage, and adventure travel. Given the UK’s experience in luxury tourism and conservation-focused hospitality, there are potential synergies for future investment in Panama’s tourism industry.
Compelling
For businesses looking to expand into Latin America, Panama offers a strategic location, political and economic stability, and a strong commitment to infrastructure, sustainability, and digital transformation. Its role as a regional logistics and financial hub makes it a compelling option for investment and trade expansion.
Iconic canal
The history of Panama is closely tied to its most iconic asset — the Panama Canal. The isthmus has always been a vital trade route. The Spanish first envisioned an interoceanic passage in the 16th century but it was not until 1914 that the United States completed the canal after earlier French efforts failed.
Pillar of trade
For over a century, the canal has been a pillar of global trade, facilitating the movement of goods across continents. Its expansion, finalised in 2016 allowed for the transit of larger vessels, reinforcing its role as a key maritime passage.
Today, the Panama Canal Authority is taking proactive steps to ensure sustainability. Facing climate change and water shortages, a proposed $1.6 billion investment in the Río Indio reservoir aims to secure freshwater supply for operations.
