LATIN AMERICABusiness Opportunities

PANAMAPANAMA

BRAZILBRAZIL

COMPARATION – BRAZIL X PANAMACOMPARATION – BRAZIL X PANAMA

Panama plays a key hole in the global economy enabling easy passage between the

Pacific and the Atlantic Ocean. It provides easy access to more than 3.5 billion people,

furthermore because of its proximity to Central America and Caribbean, a enormous

area with more than 81 million people, becoming thus, a strategic location for

Distribution Centers.For these reason, in the last few years many

renowned companies have chosen Panama as regional headquarters & DC

Such as WALMART, NESTLE, SANOFI AVENTIS, PROCTER & GAMBLE, ONU,

ADIDAS, DELL, 3M, MICHELIN, BOSCH, etc

PANAMA

GENERAL DATA FACTS

POPULATION 3,4 MILLION

CAPITAL PANAMA

CURRENCY 1 BALBOA = 1

DOLLAR

GDP 44.360 billion

GDP PER CAPITA 12,577.00

GDP BY SECTOR  

PRIMARY SECTOR 5.5%

SECONDARY SECTOR 28.7%

THIRD SECTOR 65.8%

UNEMPLOYMENT RATE 6.60%

Ocean transit time from Panama to key ports

* Transit times from list were gathered from different carriers to provide a visual

BrazilPeru

UruguayArgentina

Ecuador

Colombia

Paraguay

Venezuela

Bolivia

Chile

Mexico

Panama

Costa Rica

Guatemala

Destination Port DaysBuenaventura, Colombia 1Cartagena, Colombia 1Puerto Moin, Costa Rica 1Kingston, J amaica 2Caucedo, Dominican Republic 3Lazaro Cardenas, Mexico 3Puerto Cortes, Honduras 3La Guaira, Venezuela 4Acajutla, El Salvador 4San J uan, Puerto Rico 4Santo Tomas, Guatemala 4Savannah, USA 4New York, USA 5Puerto Cabello, Venezuela 5Puerto Quetzal, Guatemala 5Guayaquil, Ecuador 7Callao, Peru 8Houston, USA 9Iquique, Chile 9San Antonio, Chile 10Los Angeles, USA 10Santos, Brazil 20Buenos Aires, Argentina 26

• Pharmaceutical Warehousing and Logistics

BUSINESS OPPORTUNITIES IN PANAMA

PANAMAPANAMA

BRAZILBRAZIL

COMPARATION – BRAZIL X PANAMACOMPARATION – BRAZIL X PANAMA

The world's eighth wealthiest economy, Brazil is the largest country in area and population in Latin America

and the Caribbean.Although it has had a history of economic boom and

bust and its development has been hampered by high inflation and excessive indebtedness, reforms in the 1990s and ongoing sound macroeconomic and social

policies have resulted in an extended period of stability, growth and social gains.

Brazil has immense natural resources and a strong industrial development potential, but still suffers from

a wide gap between rich and poor. Innovative social programs and a more inclusive growth in recent years

have been gradually decreasing this inequality.

BRAZIL

Information from World Bank

POPULATION 190,8 MILLION

CAPITAL BRASILIA

CURRENCY 1 REAL = 1.68

DOLLARS

GDP 2.17 trillion

GDP PER CAPITA 11,289.00

GDP BY SECTOR  

PRIMARY SECTOR 6.03%

SECONDARY SECTOR 13.60%

THIRD SECTOR 80.37%

UNEMPLOYMENT RATE 6.11%

GENERAL DATA FACTS

Rio de Janeiro

Sao PauloCuritiba

Campinas

REGION POPULATION PRW

NORTH 18 MILLION 0 FACILITIES

NORTHEAST 53 MILLION 6 FACILITIES

CENTRAL-WEAST 15 MILLION 2 FACILITIES

SOUTHEAST 73 MILLION 34 FACILITIES

SOUTH 31 MILLION 7 FACILITIES

PRW BY REGION & POPULATION

GOVERNMENT SOCIAL PROGRAMS

• GROWTH ACCELERATION PROGRAM • “EDUCATION PACKAGE”• “ZERO POVERTY”

• OTHERS

GOVERNMENT SOCIAL PROGRAMS

• GROWTH ACCELERATION PROGRAM • “EDUCATION PACKAGE”• “ZERO POVERTY”

• OTHERS

CLASS D / E – NOW ARE CCLASS D / E – NOW ARE C

• BIGGER CONSUMPTION• CLASS E/D – TRAVEL AND CONSUME

MORE

• BIGGER CONSUMPTION• CLASS E/D – TRAVEL AND CONSUME

MORE

BOTTLE NECK AT INFRASTRUCTURE SUCH AIRPORTS, ROADS, ETCBIGGER PRICES INFLATION, ETC

GOVERNMENT INVESTMENTS FOR THE WORLD CUP AND OLYMPIC GAMES

BOTTLE NECK AT INFRASTRUCTURE SUCH AIRPORTS, ROADS, ETCBIGGER PRICES INFLATION, ETC

GOVERNMENT INVESTMENTS FOR THE WORLD CUP AND OLYMPIC GAMES

• MORE PRODUCTION• LESS UNEMPLOYMENT

• GDP GROWTH

• MORE PRODUCTION• LESS UNEMPLOYMENT

• GDP GROWTH

• INTERNATIONAL INVESTMENT ATTRACTION

• DOLLAR X REAL - DEVALUATION

• INTERNATIONAL INVESTMENT ATTRACTION

• DOLLAR X REAL - DEVALUATION

• GOVERNMENT RAISES THE INTERNATION INVESTMENT TAXES TO AVOID THE DOLLAR SUPER DEVALUATION BECAUSE IT AFFECTS THE EXPORTS OF

BRAZILIAN PRODUCTS

• GOVERNMENT RAISES THE INTERNATION INVESTMENT TAXES TO AVOID THE DOLLAR SUPER DEVALUATION BECAUSE IT AFFECTS THE EXPORTS OF

BRAZILIAN PRODUCTS

• IT HAS NO IMPACT AND THE INTERNATIONAL INVESTMENTS

CONTINUES TO GROW

• IT HAS NO IMPACT AND THE INTERNATIONAL INVESTMENTS

CONTINUES TO GROW

BUSINESS OPPORTUNITIES

BUSINESS OPPORTUNITIES

• DOLLAR VERSUS REAL CONTINUES TO DEVALUATE

• DOLLAR VERSUS REAL CONTINUES TO DEVALUATE

“The cost of living in Rio, Sao Paulo and Brasilia surpassed New York in 2010, according to ECA

International”

“McDonald’s Corp.’s flagship sandwich cost last year $5.26 in Brazil compared with $3.71 in the U.S.,

according to data compiled by Bloomberg from The Economist’s Big Mac index”

“Toyota Corolla manufactured in Brazil / Sold in Panama =15,500 dollars

Toyota Corolla manufactured in Brazil / Sold in Brazil = 34,000 dollars”

THE COST OF LIVING IN BRAZIL

• COLD STORAGE • TRANSPORTATION• SELF STORAGE• SUPERMARKETS• CONSUMER GOODS

• ETC

BUSINESS OPPORTUNITIES IN BRAZIL

PANAMAPANAMA

BRAZILBRAZIL

COMPARATION – BRAZIL X PANAMACOMPARATION – BRAZIL X PANAMA

  BRAZIL PANAMA

POPULATION 190,8 MILLION 3,4 MILLION

CAPITAL BRASILIA PANAMA

CURRENCY 1 REAL = 1.68 DOLLARS 1 BALBOA = 1 DOLLAR

GDP 2.17 trillion 44.360 billion

GDP PER CAPITA 11,289.00 12,577.00

GDP BY SECTOR    

PRIMARY SECTOR 6.03% 5.5%

SECONDARY SECTOR 13.60% 28.7%

THIRD SECTOR 80.37% 65.8%

UNEMPLOYMENT RATE 6.11% 6.60%

COMPARATIVE DATES

COMPARATIVE TABLE

BRAZIL PANAMA

CONSUMER MARKET HUGE VERY SMALL

SECURITY FAIRLY INSECURE FAIRLY SAFE

TAXESVERY HIGH HIGH

COST OF LIVING EXPENSIVE FAIRLY CHEAP

CORRUPTION FAIRLY HIGH HIGH

BUROCRACY HIGH HIGH

INTERNATIONAL MARKETINTERNATIONAL MARKETDOMESTIC MARKETDOMESTIC MARKET

Why Panama?Why Brazil?

Huge Domestic Market

Need for Cold Storage

Growing Economy

Location (Panama Canal)

Democracy

Stable Economy

FOCUS ON FOCUS ON

Other Markets besides Brazil and Panama

Colombia

Costa Rica

Dominican Republic

Guatemala

Argentina

LATIN AMERICABusiness Opportunities

Thank you!