Some 14,000 new companies were established in Panama during the first 100 days of 2010—nearly 4,000 more than in the same period in 2009

New statistics show that Panama is still a great place to do business. Between January and June of this year, commercial investment rose to $1.1 billion, according to the Ministry of Trade. The increase represents growth of 19.4%, compared to the previous year. Says the ministry, the growth unfortunately generated less jobs—about 48,000 or 17% less than in the same period last year.

Still, some 14,000 new companies were established in Panama during the first 100 days of 2010—nearly 4,000 more than in the same period in 2009. Ruben Castillo, president of the Panamanian Association of Business Executives (APEDE), applauded the fact that more people are choosing to start their own businesses and become independent.

Local economist Aristides Hernandez said the growth was encouraging and an indicator that the country’s economy remains stable. Per Hernandez, projections that the Panamanian economy will grow 5% this year are looking good.

Factors contributing to economic growth in Panama include mega-projects such as the Panama Canal expansion and port expansions, as well as a fast-growing shipping sector and the “new city” of Panama Pacifico, one of the largest real estate projects in the world. (View IL’s Panama Pacifico video here.)

Earlier this year, the Latin Business Chronicle released its annual Latin Business Index, placing Panama in the number one spot in the region. Last year Panama just barely missed nabbing the “best place to do business” title, which went to Chile. (The South American nation swapped places with Panama to rank second this year.)

The LBC isn’t the only agency showing an interest in Panama. This year, many are crediting the government of new President Ricardo Martinelli with achieving the so-called “big three” in investment grade ratings. In March of this year, for the first time ever, Panama earned an investment-grade credit rating from Fitch Ratings. Two months later, Standard & Poors followed suit. Moody’s completed the “big three” in June, citing improvement in the country’s fiscal and debt positions.

Who is investing in Panama? Surprisingly it’s not just locals and North Americans. News daily El Universal reports that Panama has become a favorite business and investment destination for Venezuelans. According to the report, 12% of new businesses in Panama result from Venezuelan investments. Says local finance consultant Miguel Eduardo Magallón, every time Venezuelan leader Hugo Chavez opens his mouth on his Sunday radio show—dubbed “Alo Presidente” or “Hello President”—his verbal attacks on private business and property cause “hundreds of Venezuelans” to start packing their bags to head for…you guessed it…Panama.