Panama Country Commercial Guide
Learn about the market conditions, opportunities, regulations, and business conditions in panama, prepared by at U.S. Embassies worldwide by Commerce Department, State Department and other U.S. agencies’ professionals
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Digital Economy
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Overview

Panama is considered a highly viable hub for the digital economy because of its advantageous location and attempts to modernize its economy. On the other hand, it has some difficulties in its quest for digital transformation, much like any developing country. However, Panama has taken strides to protect the personal data of its citizens by passing Law No. 81 on personal data protection. The data protection law went into effect on March 29, 2021. The government of Panama is focusing on the following areas to make the most advancements in the digital economy: regulatory framework, digital inclusion, talent development, and taking advantage of public-private partnership agreements. 

Opportunities 

There are interesting opportunities in Panama for digital economic development, such as: 

  • Regional Connectivity: Panama’s geographic position is ideal for data centers and cloud computing services due to its strategic location at the intersection of North and South America. Its attractiveness is further increased by its robust logistics network.  
  • Financial Services: Digital innovation can assist Panama’s financial services industry. Fintech businesses are creating cutting-edge loan, insurance, and payment solutions. 
  • Tourism and Hospitality: Panama’s tourism and hospitality industries stand to gain relevance from the digital economy. Digital marketing, smart city initiatives, and online booking platforms can boost tourism and stimulate the economy. 
  • eCommerce: Businesses and consumers in Panama have many opportunities due to the emergence of eCommerce. 

Challenges 

Some of the challenges that both private sector and government must work together are the following: 

  • Digital disparity: In Panama, there is still a digital contrast between urban and rural areas despite advancements. Digital services and dependable internet connectivity are still weak or non-existent in most rural areas.  
  • Regulatory Framework:  Panama must make sure its laws are current and enforced.  Currently, Law 31 from 1996 regulates the telecommunications in Panama with some updates. 
  • Infrastructure Restrictions: Although Panama has invested in its ICT infrastructure, more improvements are required to meet the rising demand for digital services and high-speed internet.  
  • Threats to Cybersecurity: As Panama’s digital infrastructure grows, so does its susceptibility to hackers. One of the biggest challenges is protecting infrastructure and sensitive data.  
  • Talent Shortage: There is a shortage of qualified workers in the ICT sector, especially in fields like software development, data analytics, and cybersecurity.  

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Global Business Navigator Chatbot Beta

Welcome to the Global Business Navigator, an artificial intelligence (AI) Chatbot from the International Trade Administration (ITA). This tool, currently in beta version testing, is designed to provide general information on the exporting process and the resources available to assist new and experienced U.S. exporters. The Chatbot, developed using Microsoft’s Azure AI services, is trained on ITA’s export-related content and aims to quickly get users the information they need. The Chatbot is intended to make the benefits of exporting more accessible by understanding non-expert language, idiomatic expressions, and foreign languages.

Limitations

As a beta product, the Chatbot is currently being tested and its responses may occasionally produce inaccurate or incomplete information. The Chatbot is trained to decline out of scope or inappropriate requests. The Chatbot’s knowledge is limited to the public information on the Export Solutions web pages of Trade.gov, which covers a wide range of topics on exporting. While it cannot provide responses specific to a company’s product or a specific foreign market, its reference pages will guide you to other relevant government resources and market research. Always double-check the Chatbot’s responses using the provided references or by visiting the Export Solutions web pages on Trade.gov. Do not use its responses as legal or professional advice. Inaccurate advice from the Chatbot would not be a defense to violating any export rules or regulations.

Privacy

The Chatbot does not collect information about users and does not use the contents of users’ chat history to learn new information. All feedback is anonymous. Please do not enter personally identifiable information (PII), sensitive, or proprietary information into the Chatbot. Your conversations will not be connected to other interactions or accounts with ITA. Conversations with the Chatbot may be reviewed to help ITA improve the tool and address harmful, illegal, or otherwise inappropriate questions.

Translation

The Chatbot supports a wide range of languages. Because the Chatbot is trained in English and responses are translated, you should verify the translation. For example, the Chatbot may have difficulty with acronyms, abbreviations, and nuances in a language other than English.

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