News

Panama’s economy will grow by 7 percent next year, making it the strongest economy in Latin America, according to a new report by a United Nation’s research group.

Overall, Latin America and the Caribbean will grow by a modest 2.2 percent growth in 2015, the economy, predicts the United Nation’s Economic Commission for Latin America and the Caribbean. The GDP of the region grew by only 1.1 percent in 2014, the smallest growth since 2009, the commission said.

But that’s not the case for Panama. The local economy grew by 6 percent in 2014, down from previous years, but still a strong performance. And rather than sliding, the UN commission expects Panama’s economy to expand at a faster pace next year. In contrast, South America’s average GDP is only expected to grow by 1.8 percent.

Panama’s growth is a direct result of major infrastructures projects, including the expansion of the Panama Canal, the expansion of projects on the Amador Causeway and the development of the Panama metro system, which continue to attract international corporations. After delays the $6 billion Canal expansion should be open and ready by 2016, which is attracting more international corporate interest.

At Punta Pacifica Realty, we see this corporate growth first-hand. We work closely with a wide range of multi-nationals on their housing needs, including Johnson & Johnson, Sony and Procter & Gamble. Based on our business finding placing executives in Punta Pacifica rentals, the multi-national presence in Panama City is growing at a steady pace, which is good news for the luxury Punta Pacifica real estate market.

More corporations means more buyers and more renters. The UN report provides more evidence that the growth trend is set to continue.

You can read the full report here.

Duncan McGowan is president of Punta Pacifica Realty, a Panama real estate agency focused on Punta Pacifica, the exclusive neighborhood of 18 towers perched on the edge of the Pacific Ocean.