Rebuilding Confidence

Panama has long been recognized as one of Latin America’s premier logistics and financial hubs. Today, however, the country’s ambitions extend well beyond those traditional strengths. The Ministry of Foreign Affairs is pursuing a broader international agenda that seeks to reinforce Panama’s reputation as a stable, reliable destination for investment while positioning it as a strategic partner in an increasingly competitive global economy.

That vision is shaped in part by Vice Minister of Foreign Affairs Carlos Hoyos, whose career bridges entrepreneurship, international law, and public service. After studying law in Panama and earning a Chevening Scholarship to pursue graduate studies at Oxford University, Hoyos built a legal practice and launched businesses across multiple industries before joining government. His experience in both the private and public sectors has reinforced his conviction that Panama’s greatest competitive advantage lies in its international outlook.

“Panama is a country whose history and vocation have always been connected to the world,” said Hoyos. “Our focus has always been to promote the country and attract investment.”

A key priority has been restoring Panama’s international image following years of reputational challenges. Rather than allowing outdated perceptions to define the country, the government has sought to highlight Panama’s commitment to international law, transparency, and constructive diplomacy. Recent diplomatic progress, including Panama’s removal from the European Union’s list of high-risk jurisdictions for anti-money laundering and terrorist financing, reflects that effort and marks an important milestone in rebuilding investor confidence.

Competing for Global Investment

While diplomacy traditionally focuses on political relations, Panama increasingly views it as an economic instrument. Its network of embassies and consulates serves not only to strengthen bilateral ties but also to showcase the country’s investment opportunities to international businesses.

For Hoyos, attracting productive private investment remains the ultimate objective. “The investment that creates the greatest prosperity is the one in which companies choose Panama because they see long-term opportunities,” he said.

The country’s value proposition is built on several structural advantages. Dollarization, low inflation, financial stability, strong connectivity, and geographic location continue to distinguish Panama from many regional competitors. Equally important is the legal certainty that multinational corporations seek when establishing regional operations.

One of the strongest examples is the SEM regime for multinational headquarters, which has attracted nearly 190 global companies to establish regional offices in Panama. Beyond capital inflows, the initiative has accelerated knowledge transfer and professional development, allowing an increasing number of Panamanians to assume leadership roles within international organizations.

“The talent is here,” Hoyos said. “What we have seen is Panamanians growing inside these companies and demonstrating their ability to compete at the highest level.”

Building the Economy of Tomorrow

Looking ahead, Panama aims to diversify beyond its traditional service economy by targeting industries that demand advanced infrastructure and highly skilled talent. The country already benefits from an expanding digital ecosystem, including multiple data centers and submarine fiber-optic cables connecting the Americas. Government efforts are now focused on attracting investment in pharmaceutical research, clinical trials, semiconductors, and other technology-intensive sectors capable of generating long-term economic value.

Supporting those ambitions requires parallel investments in education and workforce development. Close collaboration between government, universities, and multinational companies is intended to align academic training with future labor market needs, while expanding digital access for students across the country.

Inclusive growth remains another central objective. Although Panama enjoys one of the highest GDPs per capita in Latin America, ensuring that prosperity reaches rural communities continues to be a national priority. Modernizing agriculture through technology, expanding infrastructure beyond Panama City, and improving educational opportunities are all viewed as essential components of long-term competitiveness.

“There are industries of the future where Panama already has real opportunities,” Hoyos said. “Our responsibility is to prepare the country so that those opportunities translate into better jobs, greater prosperity, and a higher quality of life for all Panamanians.”