A. EXECUTIVE SUMMARY

WHY TO INVEST IN PANAMA?

At the end of 2019, Panama presented the following characteristics strategically to attract investors:

Trade Hub: 8% of global commerce pass through the Panama Canal, with 80 kilometers of distance between the Atlantic and the Paci c Ocean; Robust banking system: strong banking system with more than 80 local, regional, and international banks; International Financial Center: with total assets of the banking system as of 2019 representing 1.8x the nominal GDP of the country, Panama has been a nancial center for the principal nancial corporations in Latin America and the world; Air connecting hub: 132,000 direct ights per year to 90 destinations in 35 countries; Regional platform: Panama has 19 trade agreements, giving direct access to 59 countries in Latin America and 1.3 billion of potential customers; Special Regimes: allowing multinationals and niche business (i.e. Research and Development, Administrative, Manufacturing, Corporate services, among others) to have access to competitive tax and administrative bene ts; Ef cient urban mobility system: Panama Metro Line 1 and 2 transport +250,000 people in the metropolitan area; Low in ation rates: with an average in ation rate in the last 5 years (2015-2019) of 0.4%, being one of the lowest levels of in ation rate in the world; Legal investment stability: 10 years of legal stability of the investments done in the country, in terms of tax and special regimes; and Full dollarized economy.

The general objective of this document is to present a country pro le of Panama to potential interested parties, from an economic, nancial, and legal perspective. The speci c purpose is to provide an overview of the bene ts that Panama offers, as a key receptor for foreign investment development.