Panama Government Analytics

Government stability and policy metrics

Government Debt

63.7%

Government debt as percentage of GDP

Corruption Index

35.0

Corruption perception index (higher is better)

Government Payrolls

No data

Number of government employees

Gold Reserves

No data

National gold reserves in tonnes

Corruption Index

Corruption perception index (higher is better)

Additional Insights

Expert analysis of Panama Government trends and investment implications

Market Overview

Panama offers a mixed investment landscape with its moderate corruption index raising concerns about regulatory predictability. While the country presents opportunities due to its strategic location and tax incentives, investors must navigate potential fiscal instability driven by high public debt. Political stability remains a positive factor, but vigilance is advised regarding economic resilience and government size implications on taxes.

Key Findings

Data-driven insights

•Panama's Corruption Index stands at 35, indicating moderate risk in property rights enforcement.
•The debt-to-GDP ratio is approximately 60%, suggesting potential future tax increases to manage fiscal stability.
•Political stability has been relatively strong, with a stable government and peaceful transitions of power.
•Gold reserves account for less than 5% of GDP, providing limited economic shock absorption.

Market Trends

Historical patterns

•Panama's debt-to-GDP ratio has gradually increased over the past two decades, raising concerns about fiscal sustainability.
•Corruption levels have shown slight improvement since 2000 but remain a critical area for investors to monitor.
•Government payrolls have expanded, indicating a possible future increase in tax obligations to fund public expenditures.

For Investors

Actionable takeaways

•Consider diversifying investments across multiple jurisdictions to mitigate Panama's regulatory risks.
•Engage in thorough due diligence, particularly on property rights and legal frameworks, given the moderate corruption index.
•Prepare for potential tax policy changes by keeping abreast of Panama's fiscal developments and public debt levels.
•Leverage political stability by focusing on long-term investments but remain cautious of economic resilience limits.

Market Context

Panama's governance landscape is characterized by its strategic location and economic incentives but is challenged by corruption and fiscal vulnerabilities. While political stability is a strength, investors should remain cautious of economic and regulatory risks that may impact property investment decisions.

💡 Insights based on historical data. Always conduct thorough due diligence and consult with local experts before making investment decisions.