This brief was sent in by Gary and is from JP Morgan, via Prima Panama
Panama
According to preliminary estimates released by the Comptroller General’s office, foreign direct investment (FDI) totaled US$609 million (2.3% of GDP) in 1Q10, up 56.4% from US$389 million (1.6% of GDP) in 1Q09. The sharp increase in FDI inflows was driven by reinvested profits, which more than doubled to US$387 million during the three-month period led by higher investments in Colon Free Zone enterprises. On a sectoral basis, the principal beneficiaries of FDI during the first quarter were the hotels,
telecommunications, agriculture, livestock, and real estate sectors. Panama’s FDI fell 26.1%y/y to US$1.8 billion in 2009 amid the global recession, matching the 25% plunge the IMF has estimated for all emerging markets. As the global economy recovers from its recent slump and financial flows to developing
countries strengthen, the Martinelli administration expects FDI inflows to surpass US$2 billion (7.6% of GDP) in 2010. (Franco)
