Uruguay’s National Institute of Statistics (INE) report highlights how the service sector firmly establishes itself as a cornerstone of economic development. According to the INE’s demographic report, service companies in Uruguay generate 59.23% of registered employment nationwide, showcasing the sector’s consolidation within the labor market.

A Regional Comparison of the Service Sector

The study also revealed that service companies represent 53.96% of all businesses in Uruguay. This aligns with trends in other countries, such as Colombia, where the service sector accounts for 62.7% of companies, Peru at 54.8%, and Ecuador at 51.6%. This data illustrates the pivotal role of services in driving economic activity throughout Latin America.

Information and communication activities are one of the most dynamic subsectors within Uruguay’s services industry. Between 2018 and 2023, the number of companies operating in this area increased by a remarkable 79.77%. This growth underscores the increasing demand for digital services and technological solutions, positioning Uruguay as a competitive player in the digital economy.

The Role of Montevideo and Canelones

The geographical distribution of service companies and their employment impact paints a clear picture of regional economic hubs in Uruguay. Montevideo, the nation’s capital, continues to dominate, with 53.80% of service companies and 65.28% of employment in the sector. This concentration reflects the city’s role as the country’s economic, political, and cultural epicenter.

Canelones, located adjacent to Montevideo, is the second most significant department, hosting 11.62% of service businesses and accounting for 8.36% of employment in the sector. These figures highlight the importance of both regions in fostering the growth of service companies in Uruguay, which continue to attract investment and talent due to their infrastructure, connectivity, and access to a skilled workforce.

The Prominence of Small and Medium Enterprises

Small and medium-sized enterprises (SMEs) are outsized in Uruguay’s service sector. In 2023, micro, small, and medium businesses represented an overwhelming 99.49% of all service companies. In contrast, large enterprises constituted just 0.51%. This trend reflects the broader structure of the Uruguayan economy, which relies heavily on SMEs for employment generation and innovation.

SMEs are instrumental in promoting economic inclusivity by offering opportunities to diverse groups nationwide, especially in rural areas where large-scale enterprises are less prevalent. Their agility and adaptability enable them to cater to niche markets, further strengthening their role in economic development.

Gender Participation in the Sector

The analysis also highlighted notable progress in gender inclusion within the service industry. Women’s participation has increased significantly, with the gender gap narrowing from 0.99% in 2018 to 3.53% in 2023. This shift reflects Uruguay’s broader efforts to promote gender equality and empower women in the workforce.

Policies encouraging diversity and inclusion and the inherent flexibility of service jobs have contributed to this positive trend. The rising number of women-led businesses demonstrates the sector’s potential to drive social progress alongside economic growth.

Exporting Services: A Historic Milestone

Uruguay’s service exports have reached historic levels, totaling $6.88 billion in the last year. This remarkable achievement underlines the sector’s significance as the primary engine of the country’s economic growth. Services now constitute a substantial share of Uruguay’s overall exports, reflecting the global demand for logistics, technology, and financial services expertise.

Large Companies and Their Strategic Role

While SMEs dominate in number, large companies in the service sector play an equally crucial role due to their capacity for scale, investment in advanced technologies, and ability to manage complex operations. These enterprises are vital to Uruguay’s economy as they drive innovation, enhance productivity, and generate high-quality jobs.

The INE report emphasized the essential contributions of sub-sectors such as logistics, finance, and information technology. These industries are indispensable to modern economies, ensuring efficient goods, capital, and data flow. Additionally, healthcare, business services, and recreational activities have emerged as some of the fastest-growing sectors globally, and Uruguay is no exception.

A Look Ahead

Uruguay’s service sector is a pillar of the national economy and a gateway to its integration into global markets. The rapid adoption of technology, focus on sustainability, and promotion of inclusivity are expected to further solidify Uruguay’s reputation as a regional service leader. The continued growth of the sector, supported by strategic policies and investments, will likely provide the foundation for sustained economic prosperity.

Conclusion

Service companies in Uruguay play a pivotal role in the country’s economy, generating 59.23% of registered employment and constituting 53.96% of all businesses nationwide. This aligns with broader Latin American trends, where services are critical to economic activity. Montevideo, the nation’s capital, leads as the primary hub for the sector, housing 53.80% of service companies and contributing to 65.28% of sector employment, followed by Canelones. The sector’s remarkable growth, especially in information and communication activities, positions Uruguay as a competitive player in the digital economy. Small and medium-sized enterprises (SMEs) dominate the landscape, accounting for 99.49% of service companies in Uruguay, driving employment, inclusivity, and innovation. Gender participation in the industry has also improved significantly, reflecting national efforts toward equality. Service exports reached a historic $6.88 billion, underscoring the sector’s role as a primary economic engine. Sub-sectors like logistics, finance, and IT continue to thrive, complemented by healthcare and recreational services. Large companies contribute through innovation and job creation, while SMEs provide adaptability and inclusivity. With a strong emphasis on sustainability, technology adoption, and strategic investments, the service sector is set to maintain its role as a cornerstone of Uruguay’s economic growth and global integration.

Mexico is set to demonstrate its leadership in exports and foreign direct investment (FDI) in 2025, leveraging its strengths in value chains and key strategic sectors. Despite potential headwinds, the nation remains well-positioned to consolidate its role as a vital player in global trade and a magnet for international investment.

Resilience Amid Trade Threats

Sergio Eduardo Contreras, Executive President of the Mexican Business Council for Foreign Trade, Investment, and Technology (Comce), has dismissed concerns that trade threats from the United States will significantly impact Mexico’s export sector or slow its FDI flows. Contreras predicted that the value of Mexican exports in 2025 will exceed $630 billion, reflecting a 4.0% increase compared to 2024 projections. This growth underscores the country’s resilience and ability to navigate global economic challenges effectively.

Looking further ahead, projections for 2026 suggest a 4.5% growth in Mexican exports. This trajectory is primarily driven by Mexico’s deep integration into global value chains, which has consistently bolstered the country’s competitiveness on the international stage.

A Key Partner for the United States

The United States will continue to rely on Mexico as its top trading partner in 2025, marking the third consecutive year of this distinction. Contreras emphasized that despite Donald Trump’s expected return to the U.S. presidency and his history of tariff threats, Mexico’s export performance will remain robust.

“Mexico will continue to be the United States’ primary trading partner. Canada has experienced a significant drop in exports, not due to a tariff war like the one affecting China, but rather from a decline in competitiveness. Meanwhile, Mexico’s exports to the United States have steadily grown, while China’s sales have declined as the U.S. reduces its dependence on the Asian economy,” Contreras explained.

Mexico’s competitive edge in trade with the United States is further evidenced by its $50 billion to $60 billion advantage in exports compared to Canada. This robust trade relationship positions Mexico as a cornerstone of North American economic integration, reinforcing its leadership in exports and FDI.

Strong Foreign Direct Investment Flows

In addition to its export strength, Mexico’s foreign direct investment is projected to reach new heights in the coming years. According to Comce, FDI flows in 2024 are expected to close at $38.411 billion. For 2025, this figure is forecast to surpass $39.320 billion, reflecting sustained investor confidence in the country.

The nearshoring trend—relocating global supply chains closer to end markets—has played a pivotal role in bolstering Mexico’s FDI outlook. Thanks to this shift, FDI inflows could exceed $28 billion over the next two to three years. Contreras highlighted that Mexico’s preparedness to capitalize on nearshoring opportunities will be critical in maintaining its position as a top destination for international investment.

“Mexico is prepared to face global challenges and seize opportunities in nearshoring and foreign trade in 2025, solidifying its position as a key destination for Foreign Direct Investment and a driver of regional economic growth,” Contreras stated.

The Role of Strategic Sectors

Susana Duque, General Director of Comce, underscored the importance of Mexico’s integration into North American manufacturing value chains. Key sectors such as automotive, electronics and medical devices drive economic growth and attract foreign investment. Duque noted that nearshoring has further strengthened these sectors, contributing more to Mexico’s export and investment performance.

“Mexico to lead in exports and FDI in 2025 is not just about the numbers; it’s also about the transformative impact that foreign direct investment has on industries and communities,” Duque remarked. She emphasized that FDI should be evaluated for its volume and ability to drive innovation, enhance productivity, and create high-value jobs across Mexico.

Prioritizing Innovation and Sustainability

Duque highlighted the need for Mexico to focus on emerging industries to sustain its competitive edge. “Industries such as electromobility, renewable energy, and digital technologies should be prioritized to position Mexico as a leader in innovation and sustainability in the region,” she stated. These sectors offer significant growth potential and align with global trends toward greener and more sustainable economic practices.

In addition to fostering innovation, modernizing infrastructure will be essential for maintaining Mexico’s leadership in exports and FDI. Duque called for investments in logistical corridors, industrial parks, and the electrical grid to meet the growing demands of global and regional trade. These improvements will ensure that Mexico remains an attractive destination for international investors and a reliable partner in global supply chains.

Nearshoring’s Transformative Impact

The nearshoring trend continues to reshape Mexico’s economic landscape, creating new opportunities for export growth and investment. By capitalizing on its geographic proximity to the United States and its established manufacturing ecosystem, Mexico is well-positioned to attract companies seeking to relocate operations closer to their primary markets.

Duque emphasized that nearshoring is not just a temporary trend but a long-term shift redefining global trade patterns. “Nearshoring has bolstered Mexico’s integration into value chains and is expected to drive further investment and exports. Mexico to lead in exports and FDI in 2025 will hinge on its ability to adapt to these changes and leverage its competitive advantages,” she explained.

Conclusion: A Promising Future

Mexico’s strong performance in exports and FDI demonstrates its resilience and adaptability to global challenges. With strategic investments in key sectors and infrastructure, the country is poised to maintain its leadership in these areas well into the future.

“Mexico to lead in exports and FDI in 2025 is not just a forecast; it is a testament to the country’s strategic vision and unwavering commitment to economic growth,” Duque concluded. Mexico will continue solidifying its global economic powerhouse position by prioritizing innovation, sustainability, and value chain integration.

In a global scenario where the energy transition is on the agenda of governments and the private sector, Peru plays a key role that it can leverage for its development. “The potential is enormous for this country,” emphasized Issam Abousleiman, the World Bank’s Country Director for Bolivia, Chile, Ecuador, and Peru, during his participation in the 35th CIES Research Seminar, titled “Challenges and Perspectives for Peru and Latin America: Investment, Sustainability, and Social Cohesion.”

He noted that Peru’s economic growth potential is not 2.5%. “For us, it is nearly 6% annually, with additional growth drivers that are not yet utilized. However, necessary reforms are needed in the short, medium, and long term,” he highlighted in his presentation, “Accelerating Growth and Boosting Investments,” at the event organized by the Economic and Social Research Consortium (CIES).

“There are critical sectors for diversification, such as the digital economy, tourism, and mining; there is still much potential in the agricultural sector. These are highly significant growth drivers,” he underscored, emphasizing their relevance to economic growth in Peru.

He also stressed that decentralized growth plays a vital role in the country—a process that needs to be fully implemented, as it is currently incomplete and requires modernization. Proper decentralization could further boost economic growth in Peru by ensuring equitable development across regions.

Projects

Additionally, he highlighted that the mining sector has a pipeline of mining projects representing investments of $50 billion, and Peru can benefit from the global energy transition that demands copper. Abousleiman stated that an internal energy transition in Peru needs to be implemented and will contribute to its economic growth.

“There is so much potential that requires reforms. We hope that now, with the pandemic behind us, the government can focus on the necessary reforms,” he stressed.

Regarding decentralization, he pointed out the need to train regions, work on reforms for their implementation, and generate fiscal self-sufficiency in these regions so that the rest of the country can develop. Addressing these issues is critical for unlocking sustained economic growth in Peru.

A Crucial Agenda

In the panel “Challenges for the Peruvian Economy in 2025 in the Global Context,” Abousleiman stated that “Peru now has a great opportunity” for development. However, it must address a crucial agenda focusing on key areas such as infrastructure, education, competition regulation, productivity, and tax policy to achieve this.

“We will release a new report early next year stating that Peru needs 64 years to reach high-income country status without major reforms. However, with reforms, this timeframe could be reduced to 20 years,” the World Bank economist emphasized.

In this regard, he specified three structural issues that need attention: increasing productivity, reducing persistent territorial disparities, and improving the country’s institutional framework, which has deteriorated over the last 15 years. Tackling these structural issues will be fundamental to sustaining long-term economic growth in Peru.

Projects on Hold

Moreover, he noted that the work carried out by the World Bank, the Inter-American Development Bank (IDB), and the Development Bank of Latin America and the Caribbean (CAF) shows that 40% of public projects in the country remain unfinished.

“This represents a tremendous cost. These projects should accelerate growth but must also boost productivity,” he emphasized.

He stated that the World Bank, in collaboration with the IDB and CAF, is supporting Peru’s Ministry of Economy and Finance (MEF) with recommendations, including public-private partnerships (PPPs), to make the public investment system in Peru more efficient. Such measures are vital to driving economic growth in Peru.

However, he noted that while efforts are being made to improve public investment, private investment remains the most crucial for the country as it accounts for 90% of jobs, 70% of production, and 75% of investment.

“Where will most jobs and growth come from if the private sector does not function well? This is a very important issue for the country,” he stressed.

He added that nearly $60 billion per year is needed to close the infrastructure gap alone, and this will not come from the public sector, which does not have these funds. He also emphasized the critical role of private investment in the economy, emphasizing that strengthening private investment frameworks is key to sustaining economic growth in Peru.

Macroeconomic Fundamentals

For his part, Guillermo Díaz, CAF’s Country Economist for Peru and Chile, highlighted Peru’s economic resilience in facing external shocks, thanks to its strong macroeconomic fundamentals. However, he warned, “These are not set in stone and therefore need to be protected, as they can erode.”

“This was achieved through sound and appropriate monetary and fiscal policies over the past two and a half decades, which allowed for an average annual growth rate of 4.5% over the last 25 years—a track record that very few countries can claim,” he said.

“We must recognize that private investment is the main driver of growth and formal job creation in the country. Peru must restore the investment climate that previously fostered such growth,” Díaz added.

He also emphasized Peru’s opportunities in the energy transition. “There can be no green transition without copper, and we have copper,” he stated. These opportunities underscore the importance of strategic planning for economic growth in Peru.

Foreign Investment

Tomás Lopes-Teixeira, IDB’s representative in Peru, pointed out that in addition to its macroeconomic fundamentals, Peru has opportunities for “external investment shocks” in transportation infrastructure, including ports, integration routes, and the new Jorge Chávez International Airport, which will better connect Peru to the world.

He also highlighted the need to improve the low productivity of micro and small enterprises (SMEs), promote financial inclusion, conserve the Amazon, and strengthen public safety.

Additionally, he underlined the importance of Peru’s critical minerals, such as copper and others, for electric vehicles and lithium batteries. “Peru has an opportunity to integrate into the world as a major leader and hub for the energy transition,” Lopes-Teixeira noted, further linking these developments to the broader context of economic growth in Peru.

Regional Focus

Renowned economist Jeffrey Sachs, Director of the Center for Sustainable Development at Columbia University in the United States, also participated in the 35th CIES Seminar with his presentation, “Facing the Challenges of Sustainable Development in Peru and Latin America.”

Sachs emphasized that Peru’s approach to development should adopt a regional or continental focus. “A basic challenge for Peru, or any country, is that advancing sustainable development requires a regional, even continental, approach,” he said.

He also noted that Mercosur “cannot remain a group of five countries east of the Andes. It must establish stronger Latin American regional cooperation with a future-oriented vision.”

Sachs further stressed that regional cooperation in Latin America should focus on renewable energy sources, such as wind and hydroelectric power while ensuring the conservation of the Amazon.

Meanwhile, Liliana Rojas-Suárez, Senior Researcher and Director of the Latam Initiative at the Center for Global Development, highlighted in her keynote speech that international investors perceive Peru as a country that has managed to control high levels of inflation, providing security and confidence in its monetary policy.

“Despite experiencing hyperinflation in the early 1990s, Peru is now a country where no one doubts its ability to control inflation. This credibility is significant,” Rojas-Suárez stated.

Key Data

Peruvian exports are expected to reach $70.3 billion by the end of 2024, representing an 8.8% increase compared to 2023, driven by mining, agriculture, and fishing, according to the Lima Chamber of Commerce (CCL). Exports totaled $60.2 billion from January to October this year, 14.5% higher than the same period in 2023, according to the Ministry of Foreign Trade and Tourism (Mincetur). This increase is attributed to higher export volumes (6.4%) and improved prices (7.9%), with notable growth in the fishing (26.6%), agricultural (23.3%), and metallic mining (15%) sectors.

In conclusion, the discussions and insights from the 35th CIES Research Seminar highlight Peru’s tremendous economic growth opportunities. With untapped potential across sectors like mining, agriculture, tourism, and the digital economy, combined with critical resources for the global energy transition, Peru is well-positioned to leverage its strengths for sustained development. However, achieving nearly 6% annual growth will require strategic reforms in infrastructure, education, public and private investment efficiency, and regional decentralization. By addressing these challenges and fostering a robust investment climate, Peru can transform its economy, accelerate progress toward high-income status, and cement its role as a leader in Latin America’s sustainable development.

In 2024, Salvadoran and multinational companies maintained their investments in El Salvador. Some were announced to begin in 2025, while others completed their projects for immediate implementation. Salvadoran and multinational companies maintained their investments in El Salvador in 2024, with high expectations for better growth in the coming years. These investments played a crucial role in shaping the Salvadoran economy in 2024, marking a year of achievements and challenges.

Although the country remained the least attractive for foreign investment compared to its regional peers, the announced and completed projects demonstrated the determination of major corporations to continue driving the Salvadoran economy in 2024 and creating jobs. According to data from the Central Reserve Bank, foreign direct investment (FDI) inflows in the third quarter of 2024 were positive, amounting to $225.37 million. However, the cumulative total for the three quarters showed that 2024 was unfavorable for investments. Between January and September 2023, the country received $532.35 million, but during the same period in 2024, this figure dropped to a cumulative $387.44 million.

This decline is primarily due to a $33.6 million outflow of funds reported by the Central Reserve Bank in the second quarter of 2024. Economist Otto Rodríguez noted that although the country has improved its international image, investment has yet to arrive in full force because urgent measures against corruption and clear signals in favor of transparency are still needed. Nonetheless, the projects completed or announced this year underscore ongoing efforts to strengthen the Salvadoran economy in 2024 and beyond.

Below is a list of at least eight investments revealed this year. Some were announced to start in 2025, such as the new real estate developer Sforma, which has already laid the foundation stone for an apartment building involving a $45 million investment. Others were inaugurated this year, although they began in previous years, such as Agrisal, which opened Plaza Mundo Usulután, a new shopping mall in the eastern part of the country.

In 2025, business owners expressed enthusiasm for investing, motivated by more favorable laws and the hope of an economic recovery in the United States. This could also benefit the Salvadoran economy in 2024 as various sectors laid the groundwork for future growth.

New Shopping Mall in the East

Agrisal opened Plaza Mundo in the city of Usulután, a new shopping mall aimed at boosting the economy in the eastern region. According to Eduardo Quiñónez, president of Agrisal, the mall’s construction, which took just over a year, generated between 1,500 and 2,000 jobs. Now that it is operational, it is expected to create another 1,000 jobs for residents. The project represented an investment of $52 million, funded through an investment fund with participation from over 30 investors. In October, Agrisal announced a $30 million investment to construct an apartment complex in Soyapango. This project includes 288 two- and three-bedroom apartments distributed across three nine-story towers and a fourth building for parking spaces.

Increased Production with a Major Investment

Grupo Bimbo announced the construction of a new production plant to strengthen its presence in the Salvadoran market while consolidating its trade ties between Mexico and El Salvador. The plant involves a $200 million investment, with the first phase set to begin operations in the first quarter of 2025. The construction phase is expected to generate 150 jobs, while the fully operational plant is projected to create approximately 650 direct jobs. This project exemplifies how multinational investments have directly contributed to enhancing the Salvadoran economy in 2024 and setting the stage for sustained growth.

Fourth Location in the Country

The U.S.-based company PriceSmart opened its fourth shopping center in Santa Ana with a $20 million investment. This new membership-based shopping center joins 54 other facilities operated by the company in 13 countries worldwide. The investment also led to the hiring of 110 people. Officials from the U.S. Embassy in El Salvador attended the opening of the new location.

Expanded Production Capacity

The Salvadoran mattress company Indufoam invested $5 million to expand its production facilities, aiming to boost production capacity and increase exports. The plant spans 90,000 square meters, but the investment adds another 5,000 square meters. The company plans to invest an additional $2 million next year to expand its distribution center further. Guatemala, Nicaragua, Morocco, and South Africa are key markets for the company. These expansions highlight private-sector contributions to the Salvadoran economy in 2024 and its diversification efforts.

Luxury Hotel Chain Arrives in El Salvador

The luxury chain JW Marriott will open its first hotel in El Salvador through Real Hotel & Resorts, which already operates two similar hotels in Costa Rica and Colombia. The new hotel will be located in the Multiplaza shopping center, with construction set to begin in the second quarter of 2025. Although the investment amount has not yet been disclosed, the infrastructure is expected to enhance commerce and tourism for business and leisure. The hotel, slated for completion in 2028, will feature 186 rooms and a 16-story building designed by the prestigious architecture firm CallisonRTKL.

New Distribution Center

The multinational food and beverage company Nestlé invested $10 million in a new distribution center in Nejapa (San Salvador), expanding its storage capacity and streamlining its logistics operations. This facility is the fourth-largest plant in the region. It will handle over 17,000 tons of products annually, including well-known brands such as Maggi, Nido, La Lechera, Klim, Nescafé, and Nespresso.

Real Estate Offerings in Greater San Salvador

The new developer Sforma launched its real estate investments with the groundbreaking of the Origin apartment building, which will become the tallest building in Antiguo Cuscatlán, in the La Libertad Este district, one of the most valuable areas in Greater San Salvador. The project includes 105 apartments across 24 floors, targeting the upper-middle to high-income segment. The developer has sold 80% of the apartments, with an initial investment of $45 million.

Infrastructure for Services

Telus International El Salvador inaugurated its fourth operations center in El Salvador, capable of accommodating over 3,400 workspaces in response to the growing demand for talent and the company’s regional expansion. The new tower, spanning 19,350 square meters across nine production floors, is located in the Las Cascadas shopping center in Antiguo Cuscatlán and involved a $29.2 million investment. It features 910 parking spaces, eight elevators for 15 passengers, a boardroom on the 16th floor with a 360° view, and terraces on the seventh, tenth, and fourteenth floors.

In 2024, El Salvador saw a mix of significant investments from Salvadoran and multinational companies, some completed and operational, while others are set to begin in 2025. Despite a decline in foreign direct investment compared to the previous year, key projects demonstrated ongoing efforts to boost the Salvadoran economy in 2024 and job creation. Notable investments included Agrisal’s Plaza Mundo Usulután shopping mall and apartment complex, Grupo Bimbo’s new production plant, and PriceSmart’s fourth shopping center in Santa Ana. Indufoam expanded its production capacity, while Nestlé established a new distribution center. Luxury hotel chain JW Marriott announced its entry into El Salvador, and real estate developer Sforma broke ground on the Origin apartment building. Additionally, Telus International opened its fourth operations center to meet regional demand. These projects, totaling hundreds of millions of dollars, highlight opportunities for economic growth despite challenges in attracting foreign capital.

The Panamanian logistics sector is undergoing a transformative period, influenced by factors such as the dominance of the Chinese market, the rapid adoption of digitization, technological advancements, and the global push for sustainability. The socio-economic stability expected in Panama by 2025 will be pivotal for freight agents and logistics providers as they develop dynamic strategies to expand their operations and cater to evolving global demands. Panama’s potential to solidify its position as a regional logistics hub, leveraging its strategic location and world-class infrastructure, presents significant opportunities for growth and innovation in the sector.

Socio-Economic Stability: A Catalyst for Growth

According to the World Bank, Panama is recognized as a logistical and financial epicenter in Latin America. Its strategic location, connecting the Atlantic and Pacific Oceans via the Panama Canal, positions it as a critical player in global trade. In 2025, the country is projected to experience accelerated economic growth if it continues to attract foreign investment. The Chamber of Commerce, Industry, and Agriculture of Panama (CCIAP) highlights that the logistics sector contributes $8.364 billion to the national economy, accounting for 11.4% of the Gross Domestic Product (GDP). These figures underscore the sector’s importance as a cornerstone of Panama’s economic stability and growth trajectory.

Experts from Interborders foresee 2025 as a year characterized by national stability, technological advancement, and enhanced collaboration among supply chain stakeholders. These elements are expected to create new opportunities for optimizing logistics operations, positioning Panama as a leading hub for international trade in the Americas. As businesses increasingly seek resilient and efficient supply chain solutions, Panama’s logistical capabilities stand to gain greater prominence on the global stage.

Key Factors Driving the Panamanian Logistics Sector in 2025

The Influence of the Chinese Market and U.S. Presidential Elections is one factor.

The evolving dynamics of global trade, shaped by the influence of the Chinese market and geopolitical events such as the U.S. presidential elections, will likely have far-reaching implications for Panama’s logistics sector. China’s role as a dominant trading partner and investor in Latin America underscores the need for Panama to maintain strong trade relations with Asian markets. Meanwhile, the outcome of the U.S. elections could redefine trade policies and economic partnerships, potentially creating new opportunities or challenges for Panama. Amid these uncertainties, Panama’s stability offers a reliable foundation for growth and innovation, ensuring its logistics sector remains adaptable to shifting global dynamics.

Transparency and Collaboration in the Supply Chain

The relationship between suppliers, operators, and retailers continues to evolve, emphasizing the need for greater transparency and collaboration. While organic collaboration is inherent in the supply chain, there is a pressing need to strengthen cooperation and streamline communication among sector stakeholders. This includes adopting advanced information management systems to enhance decision-making processes, reduce inefficiencies, and maximize operational efficiency. As supply chains become increasingly complex, transparency will play a crucial role in fostering trust and ensuring the seamless flow of goods and services across borders.

Embracing Technology and Digitization

Technological innovation is set to revolutionize the Panamanian logistics sector in 2025. Adopting cutting-edge technologies such as Blockchain and Artificial Intelligence (AI) will be pivotal in optimizing operations, enhancing transparency, and increasing supply chain visibility. These technologies reduce fraud and improve the accuracy of data sharing and forecasting, enabling more efficient inventory management and route planning.

Panamanian ports are already leading the charge in automation by implementing advanced systems to streamline container handling processes and improve overall efficiency. Integrating Internet of Things (IoT) devices and real-time tracking solutions further enhances operational capabilities, providing stakeholders with actionable insights and enabling more responsive supply chain management. As technology continues to reshape the logistics landscape, Panama can leverage these advancements to maintain its competitive edge.

Sustainability in Logistics Practices

Sustainability is emerging as a critical priority for the logistics industry, driven by growing environmental awareness and the need to address climate change. In 2025, sustainable logistics practices will be central to shaping the sector’s future. Freight transportation is undergoing a green transformation, with initiatives to reduce carbon emissions, energy consumption, and waste generation. Panama’s commitment to sustainability is evident in its promotion of alternative fuels, implementation of emission reduction programs, and optimization of cargo-handling routes to minimize environmental impact.

By adopting eco-friendly practices, logistics providers in Panama contribute to global sustainability goals and enhance their brand reputation and competitiveness. Experts emphasize that successful logistics operations go beyond merely offering services; they involve identifying clients’ needs and designing tailored, environmentally conscious solutions. This approach fosters trust and strengthens brand loyalty, setting a high standard for the industry.

Challenges Facing the Sector

Despite its solid foundation, Panama’s logistics sector faces several challenges that must be addressed to unlock its full potential. Infrastructure modernization and ongoing investment are critical to ensuring Panama remains a top choice for international trade. Upgrading ports, transportation networks, and warehousing facilities is essential to meet the growing demands of global commerce.

Additionally, developing specialized professionals within the logistics industry is a pressing need. Educational initiatives and training programs to equip the workforce with advanced skills will be vital in sustaining the sector’s growth. Simplifying customs procedures and harmonizing regional regulations are equally crucial for enhancing Panama’s competitiveness in the global logistics market. Streamlined processes will reduce delays, lower costs, and improve the overall efficiency of supply chain operations.

Conclusion

The Panamanian logistics sector is poised for significant growth in 2025, driven by socio-economic stability, technological innovation, and a commitment to sustainability. As global trade dynamics evolve, Panama’s strategic location and robust infrastructure position it as a vital hub for international commerce. By addressing challenges and capitalizing on emerging opportunities, the sector can strengthen its role as a cornerstone of Panama’s economy and a leader in the global logistics landscape. With collaborative efforts from stakeholders and continued investment in modernization, Panama is set to redefine the future of logistics in the region and beyond.

The Dominican Republic concludes 2024 with remarkable achievements, consolidating its status as a potential leader in economic growth in the Dominican Republic and regional economic performance. With a projected GDP growth of 5.1% and macroeconomic stability, it is a key player in driving Latin America’s economic expansion. However, the Dominican Republic will face challenges in 2025 tied to global economic dynamics, such as the slowdown of major economies and geopolitical tensions, which could impact trade and the availability of essential inputs. To sustain its growth, the country must rely on its robust performance in tourism, remittances, and free trade zone activities.

Tourism: A Key Driver of Growth

Tourism continues to be a cornerstone of economic growth in the Dominican Republic, closing 2024 with historic achievements by surpassing 10 million visitors, combining arrivals by air and sea. This unparalleled growth reflects the nation’s ability to capitalize on the global tourism recovery. In 2025, market diversification strategies are expected to sustain double-digit growth, generate employment, and strengthen productive linkages. However, the Dominican Republic will face challenges in maintaining this momentum amid global economic uncertainty and shifting travel patterns.

Remittances: A Pillar of Economic Stability

Remittances have significantly bolstered the domestic economy, reaching nearly USD 10 billion in 2024. These flows directly enhance consumption and investment in recipient communities, proving vital for economic growth in the Dominican Republic. However, 2025 projections indicate that the Dominican Republic will face challenges tied to the economic performance of the United States, the primary source of these funds, and potential changes in migration policies. Sustaining remittance growth will require careful monitoring of external factors.

Free Trade Zone Manufacturing: Growth Opportunities and Strategic Needs

The free trade zone manufacturing sector has been bright in 2024, recording growth exceeding 6.5% and attracting foreign direct investment (FDI) surpassing USD 4.5 billion. This sector is pivotal to economic growth in the Dominican Republic, serving as a magnet for companies seeking supply chain diversification. Nevertheless, the Dominican Republic will face challenges in energy sustainability and workforce development, both critical to maintaining competitiveness. Addressing these structural issues will be essential for unlocking the sector’s full potential in 2025.

Inflation, Political Stability, and Public Policy

Inflation stability in 2024, with an interannual rate of 3.18%, has positioned the Dominican Republic among the region’s most stable economies. This stability is a testament to prudent policies supporting economic growth in the Dominican Republic. However, sustaining this performance amidst global volatility in commodity prices and potential adjustments in international interest rates will require proactive measures. The reelection of the current administration provides a foundation for public policies aimed at productive diversification, financial inclusion, and infrastructure development.

Economic Performance and Sectoral Growth

From January to September 2024, real GDP grew by 5.1%, supported by effective monetary and fiscal policies. This growth has been consistent with international forecasts and underscores the Dominican Republic’s leadership in economic growth in the Dominican Republic and the wider region.

Key growth sectors included financial services (7.9%), hotels, bars, and restaurants (6.3%), transportation and storage (5.9%), and manufacturing in free trade zones (6.5%). Local manufacturing and agriculture also expanded by 4.1%. Conversely, the mining sector experienced a negative variation of -6.1%, highlighting the uneven growth across industries. Despite these successes, the Dominican Republic will face challenges sustaining sectoral momentum against shifting global market dynamics.

Tourism and SMEs: Drivers of Inclusive Growth

In tourism, the Dominican Republic welcomed over 9 million visitors by October 2024, with projections indicating continued strength in 2025. October alone saw a 155% increase in cruise ship visitors compared to 2019, reinforcing the sector’s transformative potential.

Meanwhile, micro, small, and medium enterprises (MSMEs), which account for 32% of GDP and 61.6% of the workforce, remain vital to economic growth in the Dominican Republic. Recent monetary board resolutions aim to provide RD 2 billion in funding to support MSMEs, addressing credit access issues for acquiring inputs, expanding operations, and modernizing equipment. However, the Dominican Republic will face challenges scaling these efforts to ensure broader financial inclusion and resilience across the sector.

A Promising but Uncertain Future

While the Dominican Republic concludes 2024 with significant economic achievements, the outlook for 2025 is shaped by both opportunities and risks. The nation’s ability to navigate global economic uncertainty, sustain tourism and remittance growth, and address structural challenges in key industries will determine its trajectory. As economic growth in the Dominican Republic will face challenges ahead, strategic planning and leveraging its established strengths will be critical to maintaining its regional leadership in economic performance.

Looking Ahead: Navigating Challenges to Sustain Growth

As the Dominican Republic steps into 2025, its ability to navigate a complex global landscape will be critical in shaping its economic future. Building on the solid foundation in 2024, the country must prioritize resilience and adaptability to address emerging challenges. Tourism will remain a cornerstone of economic growth in the Dominican Republic, but targeted efforts to diversify source markets, enhance infrastructure, and invest in eco-tourism will be essential for maintaining momentum amid global economic fluctuations.

Similarly, remittances, which have become a pillar of economic stability, require strategic measures to mitigate the risks of external dependency, particularly on the U.S. economy. Policymakers must explore avenues to strengthen domestic investment opportunities for remittance flows, fostering local entrepreneurship and economic empowerment.

The free trade zone manufacturing sector holds immense potential for further expansion, but energy sustainability and workforce development will be decisive factors in maintaining competitiveness. Focusing on renewable energy initiatives and vocational training programs can address these gaps while aligning with global sustainability trends. Meanwhile, inflation management will require proactive measures to buffer against external shocks, such as volatile commodity prices and shifting interest rates, ensuring continued economic stability.

The Dominican Republic’s efforts to support micro, small, and medium enterprises (MSMEs) through improved access to credit and modernization funding will play a pivotal role in fostering inclusive growth. These initiatives must scale effectively to reach underserved sectors and regions, enabling broader participation in economic development.