Panama: Economic Freedom Under the Magnifying Glass

Negative aspects such as high state spending and discrimination in income tax payments led to points deductions.

Wednesday, June 1, 2011

The Panamanian Association of Business Executives (APEDA), has presented the economic freedom index, an indicator designed to measure the country's climate for attracting business and chances of increased employment options in the country.

The score obtained by Panama was 3.2 out of 5, which is an improvement on the last score. Apede conducted the study.

Among the elements restricting economic freedom in the country are high government spending and discrimination when collecting income taxes, based on economic activity.

On the other hand, notes an article in, the best results come from government control in banking and finance, intervention in wages and prices, property rights, regulatory initiatives, private sector development and constraints on foreign investment. "

More on this topic

Panama Falls in Apede's Economic Freedom Index

July 2013

The lower rating is the result of a larger sized government and more restrictions on foreign investment.

The indicator, prepared by the Panamanian Association of Business Executives (APEDE), moved down from 2.92 in 2012 to 2.85 this year.

According to the study of the Association, "the government controls through legal monopolies, granted via concessions, the sectors of electricity generation and transmission, management of the country's only international airport and the gaming market, among others."

The 2011 Index of Economic Freedom

January 2011

In Central America, El Salvador leads (39 in the world), followed by Costa Rica (49), Panama (59), Guatemala (79), Nicaragua (98) and Honduras (99).

According to the Heritage Foundation, who develops the index in association with The Wall Street Journal, "economic freedom is the fundamental right of every human to control his or her own labor and property.

Economic Freedom Index 2010

January 2010

In Central America, El Salvador leads (32 in the world), followed by Costa Rica (54), Panama (60), Guatemala (83), Nicaragua (98) and Honduras (99).

El Salvador and Guatemala climbed positions in the index when compared to 2009, while Costa Rica, Nicaragua, Panama and Honduras fell lower.

The Link Between Economic Opportunity & Prosperity

November 2009

The 2009 Index of Economic Freedom: El Salvador 33 in the world, Costa Rica 46, Panama 55, Nicaragua 84, Guatemala 87, Honduras 91.

The 2009 Index of Economic Freedom, produced by The Wall Street Journal and The Heritage Foundation, covers 183 countries across 10 specific freedoms such as trade freedom, business freedom, investment freedom, and property rights.

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