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For every year since 1996 the World Bank has published a list of Worldwide Governance Indicators. These measures of effective governance are considered strong indicators of a nation’s potential for economic growth and prosperity. Panama has placed well in this survey, near the top of Latin American nations. This evidence of good governance is a strong predictor of success in investment in Panama business and the Panama real estate market.

Panama

Panama is the narrowest point in the Americas where the Panama Canal connects Atlantic and Pacific. This tropical country has untouched rain forest and pristine beaches on both the Pacific and Caribbean coasts. Panama also has a first world infrastructure with the best roads, airports, ports, and telecommunications in Latin America. Panama is currently enjoying an economic boom fueled by foreign investment.

Panama and World Bank Worldwide Governance Indicators

According to the World Bank, “Governance consists of the traditions and institutions by which authority in a country is exercised. This includes the process by which governments are selected, monitored and replaced; the capacity of the government to effectively formulate and implement sound policies; and the respect of citizens and the state for the institutions that govern economic and social interactions among them.”

The following table shows Panama’s ranking by percentile for the WGI (Worldwide Governance Indicator) survey from 1996 to 2007. The number reflects the percent of countries that rank below Panama in the survey.

According the WGI website the indicators are based on a wide array or sources. “The aggregate indicators combine the views of a large number of enterprise, citizen and expert survey respondents in industrial and developing countries. The individual data sources underlying the aggregate indicators are drawn from a diverse variety of survey institutes, think tanks, non-governmental organizations, and international organizations.”

Panama in the World Bank Governance Study and Panama Success

Panama consistently places in the upper half of governance indicators in the World Bank study from 1996 to 1997. Panama has seen a continuing economic expansion, high rate of foreign investment, and a steady increase in property values over the last decade. It is no coincidence that Panama is in the midst of an economic boom and that Panama scores well in governance indicators.

Panama has chosen to allow easy residency. Panama has chosen to allow foreign ownership of property which has in turn helped fuel Panama’s real estate investment. Panama has chosen to promote medical tourism. Panama has chosen to subsidize low cost mortgages. Panama has chosen to have a pro business administration that attracts the highest per capita rate of foreign investment in Latin America.

Expect to see continuing economic prosperity, success in real estate investment, and investment by Panama in its infrastructure in the future. This democratic country has strong economic assets and, well governed, will exploit these assets to the good of its citizens and those wise enough to invest in Panama’s future.

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