| Panama Growth | | | | landmark work of economist Hernando De Soto |
| The International Monetary Fund (IMF) just released | | | | showed that by titling property throughout the third |
| its forecast for economic growth in Central America. | | | | world capital could be unleashed for growth and |
| The collective economies from Guatemala to Panama | | | | prosperity. Panama has aggressively pursued titling of |
| will grow by an average of 2.7 percent next year | | | | property of many years with excellent results and |
| according the IMF. Panama will lead the pack at 5 | | | | the flourishing small business activity in Panama |
| percent. The IMF predicts a growth rate of Panama's | | | | demonstrates. |
| economy of 6.3 percent in 2011. | | | | The second factor has been a recent change in the |
| | | | credit law allowing more comprehensive and accurate |
| Panama Trade | | | | credit checks. With the ability to demonstrate credit |
| Although the signed free trade agreement with the | | | | worthiness, and perhaps having property for |
| United States is still awaiting approval by the US | | | | collateral, small business owners are not cuing up at |
| senate a free trade agreement with Canada is | | | | the pawn shop for the cash to launch a new business |
| progressing and Panama's free trade agreements | | | | initiative. |
| with Costa Rica and Singapore have helped reduce | | | | More so than the Canal Expansion and growth in |
| prices and promote trade for several years. Panama | | | | foreign trade the change in Panama's credit laws has |
| is current part of a delegation in Brussels negotiating | | | | lead to greater prosperity of Panama's middle class. |
| a number of issues, including a trade agreement | | | | This, in turn, has lead to higher car sales and the |
| giving better access of agricultural products to the | | | | purchase of more expensive homes and apartments. |
| Common Market. | | | | This aspect of Panama's prosperity has been as |
| Whether trade stops in Panama or not at least 5 | | | | much a driver of real estate prices as the North |
| percent of sea trade in the world passes through the | | | | Americans and Europeans purchasing high end |
| Panama Canal. That number may well double with the | | | | property on the Bay of Panama. |
| completion of the much larger set of locks in 2014 | | | | Panama Real Estate Recovery, Growth, and |
| when the Panama Canal Expansion is completed. A | | | | Investment Opportunity |
| key factor for Panama is the expansion of facilities | | | | Although the middle and low ends of the Panama real |
| along the old Panama Canal Zone. When the USA ran | | | | estate market did not blink during the recent |
| the canal it kept the area for five miles on either side | | | | economic slowdown the high end experienced a |
| as a military reserve. With the exit of the USA | | | | substantial correction. Prices dropped along Avenida |
| Panama is developing port facilities, logistics sites, and | | | | Balboa and in expat retirements havens from Cero |
| even assembly operations for export. | | | | Azul to Boquete. Banks repossessed properties and |
| The increase in trade is expected to boost Panama's | | | | other are still available for a fraction of their previous |
| economy even further as the recession lifts | | | | prices. |
| elsewhere and global trade picks up again. | | | | What is happening as Panama's economy mends itself |
| Panama Business | | | | and foreigners get their finances and credit in order |
| For much of Panama's existence a common source | | | | again? The price of high end real estate in Panama is |
| of development capital for the small business person | | | | heading back up, as much as 35% in the last year. |
| was the pawn shop! Credit checks were difficult if | | | | The high end of the market has a ways to go and |
| not impossible and much property was not titled so | | | | local real estate experts are expecting another three |
| that banks would not issue credit based on land and | | | | to five years before prices reach a stable level. In |
| buildings a collateral. | | | | the meantime add underpriced real estate to your list |
| Two things have happened over the years. The | | | | of Panama business opportunities. |