While global supply chains become more fragmented amid current geopolitical tensions, Central America & Panama are increasingly emerging as an attractive nearshoring opportunity for companies. This reveals by a recent study “Nearshoring as a Lever for Regional Competitiveness” from EY
Central America has many advantages such as proximity to the U.S. & trade agreements, availability of multilateral and green investment funds that combine nearshoring with decarbonization, fiscal incentives and ample renewable energy generation.
Costa Rica, Panama, and the Dominican Republic are currently among the most active countries in attracting investment projects
Panama has recorded notable growth in foreign direct investment, rising from US$2.397 billion to US$3.24 billion, further strengthening its role as a regional logistics center (FDI 2024–2025).
Opportunities in Panama
In the opportunity map, Panama’s key role as an economically stable regional logistics hub is mentioned. It is supported by the Panama Canal, strong air & maritime connectivity, favorable investment incentives & free zones as competitive advantages.
Sectors Benefiting:
- Logistics
- Financial Services
- Technology
Strategic Recommendations for Companies
The report provides the following key strategic recommendations to companies, for nearshoring into Central America.
Location Strategy. Companies should prioritize markets that provide political stability, reliable infrastructure, and public policies that support nearshoring, leveraging fiscal incentives and subsidies available in priority sectors.
Resilient Supply Chains. Businesses should carry out comprehensive supplier mapping via digital tools to identify hidden dependencies (e.g. to geopolitical rivals) and diversify sourcing by securing critical suppliers and key raw materials. In addition, planning ahead is recommended through continuous regulatory monitoring, contingency plans addressing logistical disruptions and cybersecurity threats.
Innovation and Sustainability. Achieving a competitive edge through nearshoring requires differentiation based on innovation and sustainability, integrating technologies such as automation, artificial intelligence, and blockchain and responsible business practices in their value proposition.
Contact us if you would like to know more about the incentives for various sectors in Panama & establishing a company here.
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