Laurentino Cortizo Cohen President, Republic of Panama

• Interview

How would you assess the response and/or resiliency of the Panamanian economy with regards to the impact of the COVID-19 pandemic?

The response of the Panamanian economy to the impacts of the pandemic has been pragmatic. Like other countries in the world, Panama has suffered the consequences of the pandemic by seeing most of its productive activities paralyzed, especially in sectors that are significant to us, such as services, banking, and construction. From the beginning, like the majority of nations, we had to reconcile the needs of protecting human life by strengthening healthcare and preventing the destruction of our productive sectors. But, at the same time, we show great resilience leveraged in the uninterrupted operation of the Panama Canal and our port system, determining pillars of our income that have allowed a sustainable operation of the state. It should be noted the importance that the Panama Canal has had during this crisis by allowing the expeditious transit of medical resources and assistance to neighboring countries. In addition, in the midst of the pandemic, we were able to issue debt under highly favorable conditions for our country, underlining the great confidence that Panama has in the capital markets. One factor that has contributed to the non-traumatic continuity of our economic system has been the structured institutional support for the country's most vulnerable population, which, if it had not been given, could have suffered even greater damage due to the pandemic. This has made it possible to provide assistance to 1.5 million Panamanians, becoming an insurance of stability for the social peace that has always characterized our society. I should also point out that Panama has a historical capacity

Panama worked to keep its main economic arteries, including the Panama Canal, moving during the COVID-19 pandemic, while also bolstering the healthcare sector. With the end now in sight, the president hopes that emerging sectors such as nearshoring could play a key role in future growth.

to recover in adverse conditions. This is how we saw it during the crisis in 1989, when our economy was devastated, and all forecasts projected it would take decades to reestablish our production scheme. However, we did it in a much shorter time than expected.

Panama has thus far made significant progress in developing the country’s capacity in connectivity and nearshoring. What are your priorities or strategies to further increase Panama’s attractiveness as a nearshoring hub for the Americas?

Panama is the country with the greatest maritime and air competitiveness in Latin America and the Caribbean. The connectivity developed from this enhances a national orientation to nearshoring that allows a strategic partnership with other countries in the region for mutually beneficial ventures. It is an area to promote, since traditionally we have brought countries distant from ours closer together. Hence, it is time to look at our immediate surroundings and acquire all of the benefits that this can offer. As it is essentially about bringing products closer to customers, Panama can offer an ideal platform for this concept. Proximity, culture, and language combined would make us the true nearshoring hub on the continent.

What role will nearshoring play in the reactivation of the Panamanian economy? What are your administration’s broader goals or strategic focuses for growing the Panamanian economy in the post-COVID-19 era?

Our government has established, and is currently executing, an aggressive and, at the same time, realistic recovery plan that includes stimulus to various economic areas, emphasizing public investment in infrastructure to generate employment in the different regions of the country, as well as financing to banking and micro, small, and medium enterprises. This plan took into account in a specific way private companies and specific actions to attract FDI. Without having completely come out of this critical juncture, the country demonstrates extremely positive signs of recovery, and this can be seen in its growing progress towards a new normal. We are highly optimistic about our future as Panamanians overcome these monumental adversities and challenges together.