A surge of international money flowed into Panama in the first quarter, creating a 32.2 percent increase in foreign direct investment compared to the same quarter of 2014, new data shows.
Foreign direct investment reached $1.7 billion in the quarter, led by increases in investments in hotels, real estate, banking and other sectors, according to the National Institute of Statistics and Census. The investor confidence stems from Panama’s continued economic growth and the high returns from projects underway around the city, the Economy and Finance Ministry said in a statement.
In Punta Pacifica, we can certainly confirm the trend. Over the last six months we have seen a surge in international interest in waterfront condos. That confidence is real. As international investors review markets around the world, they are responding to the stability and investment powering Panama’s real estate market. (Read more about the market trends here.)
According to the data, 65 percent of the FDI comes from the reinvestment of profits, suggesting that foreign investors are keeping their money in Panama.
“Panama offers favorable conditions for the reinvestment of foreign investors’ profits, and the volume of additional investments is a solid vote of confidence on the business climate and Panamanian institutions,” the ministry’s director for social and economic analysis Rogelio Alvarado told reporters.
In the last three years, foreign individuals and companies have invested $11.21 billion into Panama, the Ministry says.
Jeff Barton is the Managing Director of Punta Pacifica Realty, the leading sales and property management company in the exclusive waterfront skyscraper neighborhood of Punta Pacifica. Jeff can be contacted at firstname.lastname@example.org