The Netherlands 🇳🇱 & Switzerland 🇨🇠were the 2nd & 3rd largest foreign investors in Panama 🇵🇦 in 2023, with a share of 12% and 11% of total flows. This according to recently published FDI inflow data by INEC, Panama’s Statistics Agency.
The Netherlands 🇳🇱 stood out by entering the top 10 as 2nd leading investor in Panama with a rise of +965%. FDI from The United Kingdom 🇬🇧 (ranked 8th) also saw a significant increase with +378%. FDI flows from Switzerland’s 🇨🇠decreased with 19% compared to 2022. Nevertheless, the country still rose from 4th to 3rd place, slightly increasing its share.
The United States 🇺🇸 maintained its position as a leading investor in Panama, increasing its share from 17% to 20% of total, but with a 27% decline in FDI inflows compared to the year before. Second in 2022, in 2023 it took over the No. 1 spot from Colombia 🇨🇴 that moved to the 4th place (8% share, -78% FDI compared to 2022). Singapore 🇸🇬 completes the Top 5 (7% share, +988%).
FDI Inflows by sector
FDI inflows in Panama in 2023 were mainly concentrated in Wholesale & Retail Commerce (42% of total), Financial Services (18%), Manufacturing (11%) and ICT (10%). FDI in Education saw the largest relative increase with +3333% compared to the year before. Second riser was Administrative & Support Services with +97.4% Arts & Entertainment (-1191%), Hotels & Restaurant (-306%) and Transport & Logistics (-115%) saw the largest relative declines in inflows.
FDI by country and territory
FDI inflows in Panama were down by 5% in 2023 to a total of US$2.197 billion. This was mainly caused by a drop in inflows from firms from the U.S., Colombia, Peru, Spain & Germany. Both the amount and share of investments from the European Union 🇪🇺 rose significantly with +271% in FDI and from 3% to 14% in share.
In summary, the share of FDI flows originating from Latin America decreased from 51% to 35%, and from the United States from 26% to 20%. The share of investment from the European Union rose from 3% to 14% and from China (incl. Hong Kong) from 2% to 3% of total (Source: INEC, 2025)
FDI stocks
Looking at FDI stocks, the accumulated investment over time, the top 5 of leading investor countries in Panama is composed of the United States, Colombia, Barbados, Switzerland and the United Kingdom. Spain ranks 8th. The Netherlands moved into the top 10 in 2023, as it was not in the top-10 in 2022.
Wholesale & Retail Commerce (29.8%), Finance (21.7%) and Mining (13%) are the largest investment sectors regarding FDI stocks up to 2023.
Project announcements
In terms of project announcements, 2023 saw an increase in the number of projects to 24, up from 16 in 2022, bringing it closer to pre-pandemic levels. However, the total announced investment value dropped by 80% to US$ 866 million.
Among the most significant projects was a venture by MPC Energy Solutions (MPCES), valued at over US$ 200 million. This initiative is part of the company’s broader expansion strategy in Latin America and the Caribbean, focusing on developing new grid-connected photovoltaic panel projects and acquiring existing projects to enhance the power grid (source: ECLAC, FDI in LAC, 2024).
View the table of the Top 10 investor countries in Panama 2017-2023 (FDI Flows)
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