Retail & Distribution
From The Report: Panama 2014
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Double-digit GDP growth for four of the past seven years, moderate inflation and high employment have had a positive impact on Panama’s retail sector. According to the National Institute of Statistics and Census, retail revenues increased 19.1% between 2011 and 2012, outpacing those of other service segments, and attracting growing interest from potential foreign entrants, particularly from the US. The sector has been an essential economic contributor, accounting for 14% of GDP in 2012. However, developing new facilities will be crucial for the country to compete with regional shopping destinations. While a gradual reduction in infrastructure investment and salary growth is likely to ease the retail boom of the past three years, sound economic growth is likely to sustain the continued expansion of both purchasing power and retail revenues.

This chapter includes an interview with Leopoldo Benedetti, General Manager, Colón Free Trade Zone.

Articles from this Chapter

Overview

No shortage of choice: Revenues are surging on the back of increasing income levels and rising visitor numbers
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Double-digit GDP growth for four of the past seven years, moderate inflation and high employment have had a positive impact on Panama’s retail sector. According to the National Institute of Statistics and Census (Instituto Nacional de Estadística y Censo, INEC), retail revenues increased by 19.1% between 2011 and 2012, outpacing those of other service segments such as wholesale commerce (5.4%) and hotels and restaurants (9.5%). The sector is an essential economic contributor, accounting for 14%…

Analysis

Location, location, location: Colón Free Zone is seeing increasing demand from distributors
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Panama’s advantages as a regional base for Latin America are of primary interest to international distributors. Its location along some of the world’s busiest trade lanes, the Panama Canal, a dollarised economy, stable political environment, and tax and fiscal incentives have all contributed to Panama’s proven ability to attract international players to its shores. Distribution firms now make up many of the 100-plus foreign companies that have established regional headquarters in country. Consumer…

Interview

Plenty more in store: OBG talks to Leopoldo Benedetti, General Manager, Colón Free Trade Zone
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Interview:Leopoldo Benedetti What opportunities do Panama’s new free trade agreements (FTAs) offer the retail sector? LEOPOLDO BENEDETTI: Panama is naturally a commercially oriented economy for several reasons. First, we do not have strong industry, because of our lack of skilled workers and raw materials, and the high price of energy. Second, our geographic position plus our canal made Panama good transit territory. We specialise in importing and re-exporting. Because of all this, Panama…