Fundamentals of Panama's Economy
Effects of Panama Investment
Thanks to strong economic fundamentals, the Panama economy is moving toward being a first-world country from Latin America.
In large part, Panama real estate continues to fuel this move; the country has freed itself from an undistinguished past with
decades of strong economic growth in a large number of business sectors. Supported by incredibly low inflation, this sustained
pattern of growth has allowed Panama investment in such areas as the Panama Canal and the sectors of agriculture, fishing,
mining, manufacturing, construction, real estate, entertainment and tourism to create this prosperous pattern.
Panama investment has created a positive impact on:
- Panama Canal - The tremendous effect of the Canal on the Panama's entire economy is monumental. With an estimated 10% of the
country's GDP being derived from the Canal, one cannot deny the importance of the "eighth wonder of the world" on Panama's economic
fundamentals. This percentage will continue to rise as Panama invests billions of dollars in an expansion project that should raise
the Canal's capacity by 20%. This Panama investment should also create billions in spin-off revenue as service industries grow to
provide goods and services for the expansion effort.
- Manufacturing - After a down period, the manufacturing sector has contributed positively to the Panama economic growth with the help of Panama investment. There is substantial production of food products such as beef, pork and poultry in addition to products such as beverages, sugar, fruits and vegetables. Likely a derivative of the housing boom, manufacturing output of wood, glass, cement and concrete have continued to rise as well. The manufacturing sector still has many areas for potential growth with milk products, oil, fish, textiles and shoe production still below projected levels.
- Mining - The mining industry has seen a strong growth period that will continue corresponding with the Panama Canal projects
and the current residential construction boom. Stone, clay and sand continue to be in great demand both for home construction as
well as the construction of a second bridge over the Panama Canal. The additional removal of stone during the Canal project will also
contribute to an increase in mining as a spin-off industry.
- Construction - Like the Panama Canal, the importance of the construction sector on Panama's economic fundamentals simply cannot
be understated. Housing construction has seen a dramatic upswing that appears prepared to last for the foreseeable future. Finally,
the Canal once again shows its importance as the construction sector benefits from the expansion project.
- Fishing - Panama is home to a strong fishing industry and is a leading exporter of anchovy, herring and shrimp. This industry
is also experiencing an increase of sport fishing directly related to the increasing numbers of foreign tourists.
- Panama Real Estate - The government's efforts to encourage foreign relocation and Panama investment can easily be seen in the
Panama real estate market. Because the existing homes are extremely affordable, sales of older homes continues to grow. In addition,
the new home surge continues with even the finest Panama real estate selling at prices much lower than those in North America and Europe.
In addition the luxury, high-rise condo boom in Panama City is spurring a housing construction boom that is beyond anything seen in
most other countries.
- Agriculture - Panama investment in this sector has led to strong support from the agricultural industry.
Traditional items such as coffee, sugar cane, corn, beans, floriculture and bananas; non-traditional items that help support
the agricultural effort are pineapple, melon and watermelon. Panama is also an exporter of cattle, poultry and hogs.
- Entertainment and tourism - This sector is also a direct result of the efforts of the government to attract foreign investors
and transplants. Both tourism and medical tourism becoming major industries in the Panama economy. This growth also benefits
the service industry which supplies workers for these businesses.
Conclusion
Investment in Panama can be attributed to growth in a number of key economic sectors. Because the government is so open to new
ideas for attracting foreign involvement in Panama investment, this trend of growth will likely continue for many years to follow.
With such a solid business base, Panama's economic fundamentals should continue to look very good.
In an attempt to encourage Panama investment, Government Sales were instituted for selling Panama real estate in designated areas.
These areas represent unique investment opportunities for those interested in purchasing land that is for sale in Panama.
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to learn how to get real deals from the government of Panama
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