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An economic survey carried out by the World Economic Forum places Panama number 32 of 52 developed countries surveyed. In Latin America only Chile ranked higher. It is expected that Panama will weather the current global financial crisis based upon Panama’s stable financial system and strong regulatory policies. Panama’s high ranking in the economic survey give reassurance of Panama’s economic strength which is encouraging for Panama real estate investment.

According to La Prensa, Panama, September 29, 2008, “Panama ranked 32nd out of 52 countries that were surveyed as part of the first Financial Development Index prepared by the World Economic Forum. The survey ranked countries based on 140 areas, which included facets of each country's political, social and economic systems. There were eight countries in this region included in the survey. Panama was second in the region, trailing only Chile, which ranked 30th overall. Brazil (43), Mexico (44), Colombia (46), Peru (47), Argentina (48) and Venezuela (52) were the other countries from the region included. The survey judged each country on factors such as the strength of its banking system, its business environment and its financial stability. Panama ranked highly in several areas due to “a steady performance in key indicators,” the survey stated.”

La Prensa also quotes the secretary general of the Superintendencia de Bancos, Amauri Castillo, as saying that Panama's ranking was “more than satisfactory.” “The stability, strength and liquidity of the financial system has helped the country weather the current international crisis.” Castillo added that there is also a great deal of confidence in the system because of regulatory policies and supervision.

Stability and Growth in Panama Real Estate Investment

The World Economic Forum economic survey is a piece of reassuring news among the distressing daily details of financial worry around the world. With worries in Panama real estate investment of the collapse of a “bubble” investors worry that Panama values are all based upon speculation.

Panama is a beautiful country in the tropics with lower real estate prices than in North America. What North Americans do not often understand is that Panama is a trade hub for the Americas and the world. Panama has a first world infrastructure and Panama’s economy and real estate are supported by a broad economic base, not just North American tourist and retiree dollars. Investment in Panama has been a good bet for the last ten years or more and will continue to be so into the foreseeable future.

The Costa Rica experience is that American home owners used their equity to obtain a second mortgage and then bought homes in Costa Rica. When their equity dipped they sold in Costa Rica forcing prices down. An alternative scenario to watch out for in Panama real estate investment is for North Americans to get tired of the USA’s economic difficulties, cash out, and move to Panama. There are already quite a number of expatriates doing business in Panama. A larger expatriate trend could not only support the Panama real estate market but bring more cash to Panama banks for investment.

If you are interested in investment in Panama real estate come to see the experts at ABPanama. We have over 23 years experience managing real estate portfolios and would be pleased to help you make a profit in Panama real estate.