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A recent article in the Austin American Statesman provides an excellent review of Panama’s current economic and social situation. They mention that Panama’s economy is growing despite the recession and also mention the uneven distribution of income in Panama. That also brought to mind our article of some months back regarding investment and poverty in Panama.

Investment, the Economy, and Real Estate in 2009

Since our “Social Panorama” article the world has sunk into an obvious recession with severe unemployment, mortgage defaults, and credit shrinkage. Nevertheless Panama still expects to grow at about 5% next year and the projected billion dollar cash infusion into local banks promises to keep construction projects going and folks working.

It was and is the number of jobs available and the number of people working that have increased in Panama and helped reduce poverty. It appears that the government is tuned into this and this will likely keep credit available for investment and job creation.

Social unrest is always the risk in Latin America. An angry population will revolt in some countries and in places like Panama will “throw the bums out.” A leftist move in Panama could choke off investment. Luckily it appears that the politicos are ahead of that and keeping the money flowing.

As credit continues and jobs too Panama real estate will thrive. It is the high end of the market that is suffering from too few North American buyers or too many units depending upon your point of view. The middle of the residential market is doing just fine as Panama’s middle class still has money. Panama commercial real estate is doing well because it is not dependent upon a few wealthy Norte Americanos.

Panama Investment in Real Estate and Local Politics

Panama’s national elections are in two months and the leading presidential candidate is a businessman, the owner of a large supermarket chain among other investments. It is unlikely that the new government will do an about face on the advantages of doing business and investing in Panama.

Current Opportunity in Property in Panama

Whether it was over building or the credit crisis and fewer buyers there will be quite a number of great deals on condos on Panama Bay in the coming months. This is especially true of building just coming on line as these were the ones where speculators were “flipping” between the initial contract and final payment at the finish of construction.

ABPanama believes that there is a place in between the seller, strapped for cash, and the buyer with cash in hand to help each party.

On the subject of Panama employment and poverty it appears as through Panama is still on a path of continuing economic growth and improvement of its social condition. That makes Panama a safe place to live and an excellent place to invest.

If you are interested in investing in real estate in Panama come to see us at ABPanama where we have over 23 years experience managing real estate.