| Panama Trade, Business, and Real Estate: Panama is | | | | for American war ships and pretty much all other |
| not just pristine beauty and an exciting capital city. | | | | shipping at the beginning of the 20th century. Now |
| There is more to Panama than two sea coasts, a | | | | there are super tankers and container ships too large |
| mountainous interior, a historic past and an exciting | | | | to pass through Panama Canal. The largest ship that |
| Latin American capital city. Panama is a busy place | | | | can pass is defined as a "Panamamax." The enlarged |
| with lots of investment opportunity. For the person | | | | set of locks for the Panama Canal Expansion will allow |
| interested in moving to Panama, investing in Panama, | | | | nearly all current ships to pass as well as doubling |
| or setting up a business in Panama a little background | | | | overall capacity from roughly 5 percent of global sea |
| is useful. | | | | trade to as high as 10 percent. |
| The Non-Recession in Panama | | | | So-called panamax ships, designed specifically to fit |
| The world wide recession caused a business | | | | the ninety-four year old Panama Canal locks, can |
| slowdown in Panama but the gross domestic product | | | | carry 4,000 twenty-foot containers. Expansion will let |
| never dropped below 3 percent a year from as high | | | | "cape-size vessels" with as many as 12,600 containers |
| as eleven percent in recent years. Traffic through the | | | | pass through the new "third lane" Panama Canal locks. |
| Panama Canal has dipped a little but revenues | | | | Ports up and down the East coast of the Americas |
| continue at sufficient levels to continue the ambitious | | | | are installing giant cranes capable of servicing the huge |
| expansion program. The Panama Canal Authority | | | | boats expected to use the Panama Canal from 2014 |
| expects to see a return to recent shipping levels in a | | | | onward. The canal authority expects to see as much |
| year and substantial increases when the expansion | | | | as a doubling of transit volume when the giant, cape |
| program is finished. | | | | size, vessels begin to pass through Panama. After the |
| Business in this Central American banking center, | | | | USA handed over the canal the new operators have |
| insurance center, tourist center and trade center has | | | | been developing the land along the canal for |
| simply settled down to a level that is normal in Europe | | | | commercial use. The use of land along the Panama |
| and the United States, waiting to resume a growth | | | | Canal to develop logistics operations, material |
| rate comparable to China's as the recession mends. | | | | assembly facilities, and the like is already creating more |
| The success of Panama's middle class is good | | | | jobs that take advantage of global trade passing |
| testimony to the growth of all facets of business here. | | | | through the country. |
| What Happened to Property Values and Why | | | | Trade Agreements and Investments |
| A lot of North Americans (Norte Americanos here) felt | | | | Panama has free trade agreements with several |
| the sting because of the precipitous fall in property | | | | nations. An example is that with next door Costa Rice |
| values "back home." Many took out a second | | | | in which 90% of goods pass duty free country to |
| mortgage on their first home in the states or Canada | | | | country and over the following years all goods will |
| to purchase second homes in Panama. When real | | | | gradually become duty free. These free trade |
| estate values fell up North many had to sell in Panama | | | | agreements serve to lower costs and typically help |
| to cover their mortgage back home. In addition the | | | | create jobs. Canada and Panama are actively |
| recession put a damper on new home and apartment | | | | negotiating a free trade treaty and the already-signed |
| purchases in this country for several months. Despite a | | | | agreement with the USA periodically shows signs of |
| reasonable economic climate and business conditions | | | | being passed to the Senate. |
| new high end real estate in Panama dipped | | | | Throughout Latin America and especially in Panama |
| substantially in price. That is to say, the problem with | | | | the middle class is growing larger and growing more |
| folks needing to bale out in Panama had little to do with | | | | prosperous. Besides the large influx of North American |
| Panama and a lot to do with conditions elsewhere. | | | | and European retirees it is the successful Panamanian |
| The result is that there are lots of underpriced | | | | middle class that supports and drives up prices in the |
| properties in great locations in this country waiting for | | | | housing market. This is a nation that has not had a big |
| smart investors to find them. | | | | increase in unemployment. The growing middle class |
| As world trade picks up and the historic Panama | | | | and increasing prosperity is expected to drive up real |
| Canal Expansion progresses towards completion | | | | estate prices again in Panama. |
| Panama expects to see more growth going forward. | | | | An objective measure of how well are expected to |
| Panama also expects to see property values rise | | | | do in Panama was seen a year of so ago when one |
| substantially in the next few years. New buyers will | | | | of the large US investment houses included a range of |
| come in to take advantage of prices that are | | | | Panama investments in one of its growth funds. For |
| extremely low by recent historic standards. | | | | the last several years Panama has received the |
| Panama Canal Expansion Will Change Global Shipping | | | | highest foreign investment, per capita, of any nation in |
| Patterns Forever | | | | Latin America. |
| Panama is the narrowest part of the Americas. At | | | | Opportunity in Panama |
| fifty miles wide it is the logical spot for the Panama | | | | Although the recession caused a business downturn |
| Canal connecting Atlantic and Pacific. Positioned on the | | | | here it caused a substantial "correction" in property |
| land bridge between North and Central America | | | | values on new, high end property throughout the |
| Panama is ideally positioned for transport of goods | | | | country. Whether one likes the mountains or the shore |
| and as an air hub for the Americas. | | | | Panama has both. Panama City is an exciting Latin |
| The Panama Canal has been open for business since | | | | American capital city and islands such as in the Bocas |
| 1914. Its construction was considered one of the | | | | del Toro Archipelago in the Caribbean or Taboga and |
| world's engineering triumphs. Run by the USA until 1999 | | | | the Pearl Archipelago in the Pacific offer exotic tropical |
| the Panama Canal is now administered by an | | | | retreats. Those looking for a home in the tropics will be |
| autonomous unit of the Panama government, the | | | | well served to look in Panama. Those investing in the |
| Panama Canal Authority (Autoridad del Canal de | | | | recovery of Panama's housing market may well be |
| Panamá). | | | | very happy that they did. |
| The Panama Canal Locks were built to allow passage | | | | |