
Panama
Well known for its Panama Canal, the entire canal and the area supporting it - including remaining US military bases - were transferred to Panama by the end of 1999. Thereafter, from 2007-2016, a major expansion project to more than doubled the Canal's capacity was carried out, allowing for significantly more Canal transit for larger ships.
The country's dollar-based economy is mainly supported by the services sector which accounts for nearly 80% of GDP. Among the key services in the country are those related to operating the Panama Canal, logistics, banking, the Colon Free Trade Zone, insurance, container ports, flagship registry, and tourism. Panama is also a center for offshore banking.
However, despite the growth and success of the Canal, the resulting economic performance has not translated into evenly distributed prosperity. Panama has the second worst income distribution in Latin America.
Chapter 1: Economic and business environment
Demographics | population 4.38 million (2021) |
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Capital | Panama City (population 408,168) |
Major cities | 1. Panama City (408,168) |
Languages | Spanish (official) |
GDP | US$63.6 billion (2021), up 20% year-over-year source: World Bank While the average GDP in Latin America is expected to be up 5.9% in 2021, a 5.5% uptick is forecasted for Central America driven strongly by Panama (up 12%). Neighboring countries such as Guatemala and Costa Rica are forecasted to be up 4.6% and 3.7% respectively. (source: Cepal) |
Unemployment rate | 14.5% (2021) |
Main industries | construction, brewing, cement and other construction materials, sugar milling |
Currency | US dollar |
Interest rate | 1.3% (2021) |
Fleet Maturity Index (scaling) | Approximately 67% of multinational companies in Panama offer company's cars to some of their employees. |
Political key info | Laurentino Cortizo has been the president as of July 1, 2019.
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Inflation | 1.8% (2021) |
Chapter 2 : Automotive market, segments & sales
Total Car park | 1.22 million vehicles, approximately one vehicle per three inhabitants. |
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Top 5 brands (total market) | 1. Toyota (approx. 22% of the market) |
Dealer network (including fleet dealer network) | Panama has more than 50 car brands. |
Used car market/renewal cycle | As used car imports are allowed, there are numerous car models in the country. |
Chapter 3: Company car market
Total Fleet Park (company cars)/Fleet penetration in total fleet sales | Panama is among the countries with the lowest OEM corporate fleet operations in Latin America. Others include Nicaragua and Venezuela. |
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Evolution fleet sales (last 5 years) | In 2019, commercial vehicles sales fell 13% to 7,851 units from 8,995 (source: OICA) |
Chapter 4: Taxation & legislation
Legislation
In terms of vehicle imports, in order to ensure that the car is not stolen, the local police will have to inspect the car and issue a Certificate “that the car has not been stolen”. Then the Police will send the papers to “a Municipio”, and once the papers are received at the Municipio, the car can be registered in the owner’s name. In Panama City, at the Municipio of Panama is where the “Registro Unico de Propiedad Vehicular” will be issued. The Placa has to be paid and then the car can be collected.
When vehicle are sold, unless it is sold to another individual who is eligible for duty free importation of a vehicle, they must pay the exempted duty before transferring title of the vehicle.
Chapter 5: Car policies
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