The Organization for Economic Cooperation and Development (OECD) has released its latest update on trade facilitation indicators, highlighting significant global progress in streamlining international commerce. Panama ranks among the top performers in Latin America, demonstrating the country’s commitment to efficient trade procedures.
Global Trade Costs Reduced
According to the OECD report using 2024 data, advancements in international trade facilitation procedures over the past decade have reduced costs by up to 5%. The organization emphasizes that implementing “ambitious reforms” could further decrease these costs by an additional 12 percentage points.
Progress has been observed across all major regions worldwide, with the most significant relative improvements between 2022 and 2024 occurring in previously lagging regions. Border bottlenecks and bureaucratic procedures for exchanges decreased by 6.5% in sub-Saharan Africa, 4.7% in the Middle East and North Africa, 4.4% in the Americas, 4.4% in Asia-Pacific, and 3.1% in Europe and Central Asia.
Regional Performance
In the OECD’s classification system, the Europe and Central Asia region demonstrates the strongest trade facilitation indicators, scoring approximately 6.5 points on an 8-point scale. Following in order are Asia-Pacific, the Americas, and the Middle East and North Africa with around 5 points, while sub-Saharan Africa scores about 3.5 points.
Within Latin America and the Caribbean, only Colombia (18.07) and Chile (18.03) exceed the 18-point threshold on a 22-point scale. Panama ranks impressively in fifth place regionally, closely followed by Brazil, Argentina, and Uruguay.
Panama’s Real Estate Market Impact
Panama’s strong performance in trade facilitation creates a positive environment for commercial and residential real estate investment. As international trade procedures become more efficient, commercial property in logistics hubs like Panama City and Colon could see increased demand.
The country’s commitment to streamlining trade aligns with its reputation as a strategic business location, potentially attracting more multinational companies seeking regional headquarters. This corporate presence typically drives demand for both premium office space and high-quality residential properties for executives and employees.
For investors, Panama’s continuous improvement in trade facilitation suggests long-term economic stability and growth, factors that historically contribute to real estate appreciation. Areas near ports, canal operations, and free trade zones may particularly benefit from these positive trade developments.
Room for Improvement
Despite the progress, the OECD report emphasizes that “more efforts are needed to fill existing gaps in establishing regulatory frameworks for trade facilitation and their practical implementation,” particularly regarding document and process automation.
Countries that continue to improve in these areas are likely to see even greater economic benefits, with Panama well-positioned to capitalize on further advances in trade facilitation.
Looking to Invest in Panama’s Growing Economy?
Casa Solution offers expert guidance on property investment opportunities throughout Panama. Whether you’re interested in commercial properties in strategic trade locations or residential real estate in thriving communities, our team can help you navigate the market with confidence.
Contact Casa Solution today to discover how Panama’s strong trade facilitation performance can benefit your real estate investment strategy.
