Mexico, Panama Strengthen Economic and Social Alliance

Mexico and Panama have further strengthened their economic and social alliance within the framework of the “Connecting with Panama” presentation, an event held on May 31, 2023. The event was organized by Panama’s Authority for Investment Attraction and Export Promotion (PROPANAMA) in collaboration with the Embassy of Panama in Mexico. 

During the forum’s inauguration, Alfredo Oranges, Ambassador of Panama to Mexico, said that “both economies are complementary but need to deepen their alliance to take advantage of Mexico’s industrial capacity and the logistical strength of Panama.” He highlighted Mexico’s industrial and economic position, saying they could be enhanced by leveraging the logistics services offered by the Panama Canal, where necessary adjustments have been made to accommodate large-scale vessels. 

Allan Ritter, Director of International Promotion, PROPANAMA, emphasized Panama’s range of investment, trade, social and tourism opportunities. He particularly highlighted the security issue, stating that Panama is one of the safest countries in the region. “Our mission is to make Panama the most productive, inclusive, sustainable and digital country in the region; it truly is ‘The Place to Be’ for a better recovery,” says Ritter. He adds that Panama has reported an annual economic growth rate of 10% (data as of 2002), surpassing regions such as North America (3%) and the rest of Latin America and the Caribbean (4%). 

According to data from the National Government of Panama, the Central American country has a population of 4.4 million and a workforce 2-million strong. Panama’s economy grew by 10.8% in 2022, and the per capita Gross Domestic Product (GDP) stood at US$17,409 as of 2022. Based on 2021 figures, Panama’s trade balance amounted to US$3.56 billion in exports and US$11.56 billion in imports. That year, the country attracted US$1.93 billion in Foreign Direct Investment (FDI). According to the Mexican Ministry of Economy, Mexican exports to Panama totaled US$927 million from January to August 2022, while imports from the Central American country reached US$78 million. These operations were carried out under the Free Trade Agreement signed by both countries on April 3, 2014, which came into effect on July 1, 2015. 

“Connecting with Panama” brought together public and private leaders from both countries. Throughout the day, there were informative presentations about investment and trade opportunities in Panama, especially in industrial sectors, logistics and distribution, multimodal hubs and real estate. 

PROPANAMA was established in April 2021 to coordinate Panama’s efforts to promote the country’s participation in the international context through sustainable investments with a social impact and the export of high-quality goods and services.