Be the first to like this
Public Works Projects And Growth In Panama
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. 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 improvements is infrastructure.
Banking, Insurance, Transportation, Hotels, and Catering
Not only is there a connection between public works projects and 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.
Growth Year after 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. Panama has matched the growth rate of China for the last decade.
Cars and Inflation
Prosperity has put roughly 4,000 new cars a month on the streets of Panama City. To cope with excess traffic new roads have been and are being built. Modern buses are replacing the old US school bus system of buses, the diablos rojos or red devils. The capital city is building a state of the art metro system as well.
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 has the cost of eggs gone up but real estate prices as well. One who might consider Latin American investments could do a lot worse than to look to the growing economy at the cross roads of the Americas, Panama.
While the Panama economy is thriving there are always business failures and person problems that put both business property and residences back in the hands of the bank that holds the mortgage. For information about investment opportunities in Panama repossessed property, contact us at www.RobertGirga.com.