The outlook for the Panamanian economy is “enviable” as described it in a recent JP Morgan report about the prospects for Latin America and the Caribbean. We’ve seen GDP growth predictions ranging from 7 – 7.5% for 2012, led in large part by the mining and construction sectors. Anyone who has been to Panama in the last six months can testify that this city is very much a work in progress, with almost every single street in Panama City and the surroundings being either repaved, rerouted, or expanded. It’s made for a very congested rush hour and an absolute mess in some areas, but in 12 months time, all of the headaches will be worth it. We’ve already seen what an expanded Balboa Avenue can do to relieve traffic movement, and to see the results of the city wide campaign come to fruition will be a giant relief. According to the report, revenues from Canal tolls grew 4.3% in January to $ 162 million fueled by cargo tonnage and cruise ship traffic. The increase in traffic through the canal means revenues should continue to drive forward, with the firm estimates that the Canal revenues rise by 7.5% this year. Tourism is another sector that is seeing strong growth, with a 12% year over year increase expected for 2012. This, along with the inclusion of Panama as one of the top 20 performing economies in the world is welcome news for anyone who is invested long term in the country. Have you invested in Panama real estate or other parts of the economy? If so, let us know your thoughts and outlook in the comments section below.
The outlook for the Panamanian economy is “enviable” as described it in a recent JP Morgan report about the prospects for Latin America and the Caribbean. We’ve seen GDP growth predictions ranging from 7 – 7.5% for 2012, led in large part by the mining and construction sectors. Anyone who has been to Panama in the last six months can testify that this city is very much a work in progress, with almost every single street in Panama City and the surroundings being either repaved, rerouted, or expanded. It’s made for a very congested rush hour and an absolute mess in some areas, but in 12 months time, all of the headaches will be worth it. We’ve already seen what an expanded Balboa Avenue can do to relieve traffic movement, and to see the results of the city wide campaign come to fruition will be a giant relief. According to the report, revenues from Canal tolls grew 4.3% in January to $ 162 million fueled by cargo tonnage and cruise ship traffic. The increase in traffic through the canal means revenues should continue to drive forward, with the firm estimates that the Canal revenues rise by 7.5% this year. Tourism is another sector that is seeing strong growth, with a 12% year over year increase expected for 2012. This, along with the inclusion of Panama as one of the top 20 performing economies in the world is welcome news for anyone who is invested long term in the country. Have you invested in Panama real estate or other parts of the economy? If so, let us know your thoughts and outlook in the comments section below.