Friday, December 3

Foreign Direct Investment in the Panamanian economy falls 12.6% – – Financial News of Panama

Foreign Direct Investment (FDI) in the Panamanian economy for the first semester of 2021 reached a net balance of $ 1,355.4 million, presenting a decrease of $ 195.1 million qwhich results in a contraction of -12.6%, Compared to the same period of the previous year.

It is certainly a setback, Since before 2020, the year in which the Covid-19 pandemic began, it registered growth of up to 15%, representing over 10% of the country’s Gross Domestic Product (GDP) and being an important source of employment.

According to el Balance of Payments report first semester 2021 of the National Institute of Statistics and Census (Inec) attached to the Office of the Comptroller General of the Republic, This drastic decline is influenced by deficits in the international license banking sectors, Colon Free Zone and Other companies, which were affected by the Covid-19 pandemic, affecting the decrease in the economic activity of Wholesale and Retail Trade, both in the Colon Free Zone and Other companies.

Of the total of $ 1,355.4 million, about $ 1,288.6 correspond to reinvestment of profits by foreign companies operating in Panama.

In the compiled period of 2021, portfolio investment had a negative balance of $ 865.8 million, equivalent to a positive variation of 232.6% due to increases in the records of bonds and promissory notes in debt securities.

As of June 2021, the other investment registered a positive balance of $ 349.2 million, by increase in currency and deposits in assets.

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