Corporate Finance - Panama

Panama

The revenue in the Corporate Finance market is projected to reach US$1.41bn in 2024.
It is expected to show an annual growth rate (CAGR 2024-2029) of 1.25% resulting in a projected total amount of US$1.50bn by 2029.
The average transaction value in the Corporate Finance market amounts to US$53.76m in 2024.
From a global comparison perspective, it is shown that the highest revenue is reached in the United States (US$130.10bn in 2024).

Market

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Analyst Opinion

The Corporate Finance market in Panama is experiencing a significant shift driven by various factors.

Customer preferences: Panamanian customers in the Corporate Finance market are increasingly seeking more personalized and tailored financial solutions. They are showing a growing interest in diversified investment options and are inclined towards innovative financial products that offer higher returns. Additionally, there is a rising demand for digital banking services among customers, reflecting a shift towards more convenient and accessible financial solutions.

Trends in the market: One notable trend in the Corporate Finance market in Panama is the increasing presence of fintech companies offering alternative financial services. These fintech firms are disrupting traditional banking models by providing efficient and cost-effective solutions, attracting a younger demographic of customers. Moreover, there is a noticeable trend towards sustainable finance and socially responsible investments, indicating a growing awareness of environmental and social issues among investors in Panama.

Local special circumstances: Panama's strategic geographical location and its status as a major financial hub in Latin America play a crucial role in shaping the Corporate Finance market. The country's strong regulatory framework and political stability have contributed to its attractiveness for foreign investors and multinational corporations. Additionally, Panama's dollarized economy and its well-established banking sector provide a solid foundation for the development of the Corporate Finance market.

Underlying macroeconomic factors: The stable economic growth and low inflation rate in Panama are key macroeconomic factors driving the development of the Corporate Finance market. The country's robust GDP growth and increasing foreign direct investment indicate a favorable business environment, attracting both domestic and international players to the Corporate Finance sector. Furthermore, Panama's ongoing infrastructure projects and efforts to enhance its financial services industry are creating new opportunities for growth and expansion in the market.

Methodology

Data coverage:

Figures are based on the revenue generated by the Investment Banking market, as well as the transaction value, the number of transactions, and the average transactions size of the Mergers and Acquisitions (M&As) and Initial Public Offerings (IPOs) markets.

Modeling approach / Market size:

Market sizes are determined by a bottom-up approach and are based on a specific rationale for each market. As a basis for evaluating markets, we use market research and analysis, as well as data from annual financial reports. Furthermore, we use relevant key market indicators and data from country-specific associations and national data bureaus, such as GDP, wealth per capita, and total investment (% of GDP). This data helps us to estimate the market size for each country individually.

Forecasts:

In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the particular market. In this market, we use the HOLT-damped Trend method to forecast future development. The main drivers are GDP per capita and total investment (% of GDP).

Additional Notes:

The market is updated twice per year in the event that market dynamics change.