Top industries for Offshore Company in Panama part 2

Following on from Part 1 of the top industries in Panama, G.O.C would like to expose readers to the largest industries among the top industries in Panama.

The service industry is Panama's most important domestic business. Because it contains the Panama Canal, transportation is the most significant economic pillar in the service industry and the primary source of government revenue. Finance, tourism, and real estate are the three segments of the service business.

Financial Services

The service industry is Panama's most important domestic business. Because it contains the Panama Canal, transportation is the most significant economic pillar in the service industry and the primary source of government revenue. Each year, almost 14,000 ships transit through the Panama Canal. The United States is significantly reliant on the Panama Canal, with an estimated 10% of all US commodities traveling through it each year.

There are several elements that contribute to Panama's status as Latin America's financial services powerhouse. To begin, since adopting a dollarized economy in 1904, Panama has benefited from the stability given by the usage of US money. The usage of the dollar also reduces the cost of doing business with other nations that utilize the US dollar as their currency.

This stability is supported by a political climate that is far less turbulent than in many other Latin American countries. While nations such as Venezuela and Brazil are in political turmoil, Panama boasts a stable democratic government. When paired with the government's permissive tax policies and Panama's strategic position between North and South America, all of these reasons have swiftly made Panama a choice for financial services.

Result? To date, more than 80 banking and financial institutions have been created in Panama, the majority of which are based in the country's capital city. Many of these firms do business both domestically and globally. Although the industry was first formed to provide trade credit for enterprises shipping products over the Canal, the financial services industries are becoming more broad today. Many investors are particularly interested in the sector's rising diversity, which will provide new investment opportunities. Insurance and reinsurance, in particular, have a high growth potential in the next few years.

We cannot discuss the expansion of financial services without noting the increasing effect of FinTech on the business. As customers increasingly conduct business with these non-traditional businesses, more people in the financial services sector will join FinTech to profit on the environment it generates.

Tourism

Panama is expected to remain at the top of the traveler's wish list in 2018, and for good reason. This is a country that genuinely offers something for everyone. There is no wrong way to experience Panama, from the vibrant city scene and ancient architecture to the stunning beaches and spectacular wildlife. 

The Panamanian government is also taking efforts to guarantee that the tourist industry has a chance to thrive, with a large sum of money being spent on the expansion of Tocumen International Airport in order to increase yearly visitor numbers. Ecotourism, in particular, is developing at dizzying speed. Northerners have begun to come to Panama to experience everything that the natural environment has to offer, thanks to the country's unique biodiversity and year-round tropical warmth. Furthermore, the fact that Panama is still seen as a "lost" destination draws many visitors searching for a less congested option to Costa Rica or Colombia.

Eco-tours, guesthouses, rural transportation services, and equipment rentals for a range of outdoor activities are being developed by local and foreign enterprises. People are seeking methods to enable guests to experience everything that Panama has to offer while still earning a profit from coast to coast and deep into the country's interior.

Real estate

It's no surprise that the real estate market in Panama City is thriving. Every day, it appears that new hotels, business buildings, and residential complexes are being built. Panama's population is expanding, and the country's thriving employment market continues to draw transplant recipients from all over the world. Furthermore, the government is doing its share to accommodate the rising demand for development and infrastructure.

Public investments in improving transportation alternatives, such as a new metro line, will help retain people in the city. That is not to argue that the capital is the only area where real estate is active. The tourism industry necessitates the quick construction of a large number of hotel rooms both in the city and outside. New resorts are sprouting up along the shore. And, as more tourists visit Panama to see how great it is, there is a growing desire for time-sharing and flats in more isolated places where visitors may wish to acquire their own real estate.

Real estate business prospects are broad, and international property owners have the same rights and protections as Panamanians, making Panama one of the top-ranked countries in the area. Foreign direct investment (FDI) is a growing industry. With all of this expansion, real estate investing has become one of the most popular types of foreign investment in Panama.

Conclusion

The industries listed above are worth keeping a watch on in Panama. These are not the only industries with promising business prospects. There are several additional sectors where a skilled entrepreneur might make a fortune. However, for those who aren't sure where they want to leave their impact, this list is a wonderful place to start. Whatever country you choose to do business in, Panama is a pretty safe alternative that is expected to increase. Overall, there is no better moment than the present in Panama.

*Disclaimer: While G.O.C endeavors to provide accurate information, this article serves as a reference guide and should not substitute professional legal advice. Please consult G.O.C's professional team of support for advice tailored to your specific circumstances.*