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Public Works Projects Drive Growth In Panama
By www. http://robertgirga.com/RobertGirga/
The economy in Panama grew at 6.8 % rate in August of 2012.
The worst recession in 75 years missed Panama as its economic growth rate dipped to 3.5% and then rebounded.
A major reason for the continued economic expansion in Panama is infrastructure driven.
Public works projects such as the Panama Canal Expansion
and the new Metro 1 combination subway and elevated train are main factors in the continued growth of Panama.
However, Panama also is a magnet for foreign investment.
For several years Panama has had the highest per capital rate of foreign investment of any nation in Latin America.
Transportation, Hotels, Banking, Insurance, and Catering
Not only public works projects drive growth in Panama.
The fact that the Panama Canal is here makes Panama a hub for container shipping and reshipping.
The country is a tourist magnet and a combination of business travelers and tourists fill the hotels and give the catering industry a boost.
In addition, the Panama City banking district, “bancaria,” is as closely packed with banks as any outside of Zurich.
Panama has a thriving insurance industry as well.
Not Just One Year
While public works projects drive growth in Panama this year the country’s economic growth is not a flash in the pan.
Its growth rate in 2011 was 10.5% for the year.
Cars and Inflation
There have been two obvious results of prosperity in Panama.
One is that there are a lot more cars on the streets of the capital city.
Estimates have been that 4,000 new cars hit the streets of “ciudad Panamá” every month.
Thus the country is converting its old US school bus system of buses, the diablos rojos or red devils, to modern buses
and they are building a state of the art metro system.
Along the way this author’s “egg index” has doubled in the last five years.
The egg index, by the way, is the cost of a dozen grade A large eggs at the El Rey supermarket a block away for this author’s home.
Not only the cost of eggs has gone up but real estate prices as well.
One who might wish to invest in Latin America could do worse than to look to the growing economy at the cross roads of the Americas, Panama.
For more insights and useful information about Panama, Latin American investments, and more feel free to contact us at www.RobertGirga.com.