Over the past few years, financial writers have focused on fast-growing eastern economies like China and Dubai. Meanwhile, under the radar screen, Panama has quietly created an extraordinary story of economic success in the Americas.
The case for Panama rests, not just on one or two factors, but a combination of forces that have been driving up GDP at a pace exceeding 8 percent, putting it in the front ranks of a global economic boom. Meanwhile, Panama’s stable government has cut taxes and generated budget surpluses. As a result, the Panamanian real estate market is enjoying a surge in domestic and foreign interest.
Panama’s success is supported by:
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Booming global trade through the Panama Canal, and a $5.2b project to double Canal capacity
Booming global trade through the Panama Canal, and a $5.2b project to double Canal capacity•Growing job market, creating 40,000 new jobs last year (equivalent to 4m new jobs in the U.S. economy)
Growing job market, creating 40,000 new jobs last year (equivalent to 4m new jobs in the U.S. economy)•Dollar-based economy, with no local currency risk, low interest rates, and low inflation
Dollar-based economy, with no local currency risk, low interest rates, and low inflation•Retirees and eco-tourists from the U.S. and Europe buying vacation or permanent homes in Panama
Retirees and eco-tourists from the U.S. and Europe buying vacation or permanent homes in Panama•Low taxes and a government firmly committed to attracting investment
Low taxes and a government firmly committed to attracting investment•Stunning beaches and landscapes, along with a quickly gentrifying urban area.
Stunning beaches and landscapes, along with a quickly gentrifying urban area. •Future development, including a planned refinery from Occidental Petroleum, a new megaport near the Pacific entrance to the Canal, and a Trump hotel and tower in Panama City.
Future development, including a planned refinery from Occidental Petroleum, a new megaport near the Pacific entrance to the Canal, and a Trump hotel and tower in Panama City.These factors are diverse and powerful, providing continuing support for Panama’s real estate market.
