Panama vs Paraguay
A data-driven side-by-side: investment score, economy, business climate, political stability, and tax, to help you decide where to invest, incorporate, or relocate.
Overall: Panama ranks higher
Panama scores 65/100 on our composite investment index, ahead of Paraguay at 40/100. This blends economic strength, political stability, business climate, financial maturity, and growth outlook. Read the breakdown below to see where each country actually leads.
Category breakdown
65
Economic strength
Panama leads
38
58
Political stability
Panama leads
35
70
Business climate
Panama leads
42
68
Financial maturity
Panama leads
36
58
Growth outlook
Panama leads
52
Macro snapshot
82
GDP (USD bn)
+37.5 bn
45
3.5%
GDP growth (%)
-0.5 pp
4.0%
$18,500
GDP per capita (USD)
+12400.0
$6,100
2.0%
Inflation (%)
-2.0 pp
4.0%
5.5%
FDI (% of GDP)
+4.3 pp
1.2%
55%
Public debt (% of GDP)
+19.0 pp
36%
4.4
Population (M)
-3.0M
7.4
Panama: strong sectors
- Logistics & Canal18.0% of GDP78
- Financial Services14.0% of GDP70
- Tourism8.0% of GDP62
- Construction10.0% of GDP58
Paraguay: strong sectors
- Agriculture18.0% of GDP55
- Hydroelectric Energy8.0% of GDP48
- Livestock6.0% of GDP42
- Manufacturing10.0% of GDP38
Frequently asked
Which is better for investment: Panama or Paraguay?
Our composite investment index gives Panama a score of 65/100 and Paraguay a score of 40/100. Panama ranks higher overall, but the right answer depends on your sector and risk tolerance. See the category breakdown above.
Is Panama a safer market than Paraguay?
Risk classification puts Panama as moderate (Growing economy with manageable risks - suitable for diversified portfolios) and Paraguay as caution (Significant risks present - experienced investors with hedging strategies).
Which has higher GDP growth: Panama or Paraguay?
Panama is currently growing at 3.5% per year, vs 4.0% for Paraguay. Paraguay has the faster headline growth rate today.