Panama provides attractive conditions for investors and is working in the right direction. Attention should be given to better communicating the existing policies and plans to investors.
Among the three EIRA risk areas, discrimination between foreign and domestic investors and unpredictable policy and regulatory change are lower compared to breach of State obligations.
Panama’s performance is good on two of the EIRA indicators, and it is moderate on two indicators. It has received a score of 77 on the indicator management of decision-making processes. The indicator score for regulatory environment and investment conditions is 72. On rule of law and foresight of policy and regulatory change it has received 59 and 52 points, respectively.
On a more detailed level, Panama’s sub-indicator performance is good. The highest-scoring subindicator is transparency with 92 points, followed by restrictions on FDI at 80 and robustness of policy goals and commitments at 75. Regulatory effectiveness and institutional governance stand at 64 and 63, respectively. Performance on management and settlement of investor-State disputes (60) and respect for property rights (58) is moderate. Communication of vision and policies has received a low score of 29.