"Panama's economy will have the best performance of any country in Latin America in 2007 and in 2008, according to a Latin Business Chronicle analysis of new forecasts from the United Nations Economic Commission for Latin America and the Caribbean (ECLAC). ECLAC predicts Panama's GDP should grow by 8.5 percent this year and another 7.5 percent next year. Panama is outperforming all other countries in Latin America.
"The growth that we are witnessing is building our confidence that investment is sound", said Fidel Ponce, Director of Panama Hot Real Estate. "Investing in Panama real estate is a relatively safe investment."
These forecasts come as Panama has awarded its first contracts for the $5.2 billion expansion of the Panama Canal that is expected to create many new jobs and bring additional investments, including in real estate. Panama has experienced a rise in property values because of increasing popularity as a retirement destination. Panama maintains this position due to its political stability, stable banking laws, good climate, low crime rate and relatively low cost of living.
Economic growth in Panama is also getting help from tourism. Panama is the fastest-growing tourism market in Latin America, measured by arrival growth, according to a Latin Business Chronicle analysis based on World Tourism Organisation data. Panama posted the strongest growth in tourist arrivals in 2006, 20.1 percent. Panama Institute of Tourism predicts that by 2010 Panama will have more than 2 million tourists per year, surpassing Costa Rica.
