News

Panama’s economic growth continues to lead the region, as Panama City develops as a business and tourism hub for Latin America.

The latest government data shows Panama’s economy grew by 6.3 percent in the second quarter, compared to a year earlier. This is great news for the real estate market – nothing drives real estate sales and rentals better than a vibrant, organically expanding economy, creating a strong domestic investment demand.

In the latest report, the Economy and Finance Ministry reiterated their belief that the economy will grow by 7 percent by the end of the year, making Panama one of the top performing economies in the world. In dollars, Panama’s GDP stood at $17.32 billion in the first half of the year, up $1 billion from the same period a year ago.

While economists note that Panama’s growth has been slowing, the double digit gains that started two years ago couldn’t be sustained. The government targeted more than $15 billion to infrastructure projects, including the expansion of the Panama Canal, exaggerating the growth numbers for two years. (For more, see: Reality Behind Latest Panama Economic Data.)

What we’re seeing now is a diversified economy, growing in several distinct sectors, led by mining, retail – and this might surprise some people – construction. In many countries around the world, construction is still in a depressed state.

But Panama City continues to see activity, both in the public and private sector, which means more jobs and more investments. Over the last five years, Panama’s economy has grown at an average annual rate of 8.5 percent, Reuters reports, the type of vitality that is the envy of countries around the world.

That type of activity translates to a buoyant property market, with a sustainable future supported by economic fundamentals.

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.